On October 18, the Consumer Financial Protection Bureau
("CFPB" or "Bureau") entered into the long simmering debate over
consumer-authorized data sharing. This debate pits mainstream
financial institutions, which are typically reticent to share
customer data with third parties, against data aggregators and
other fintechs. Those newer companies provide services
directly to consumers—or to enhance the consumer
experience—and rely on data from mainstream institutions in
order to do so. Both sides are grappling with complex issues
surrounding consumer information, including who owns consumers'
financial data, as well as how it can be used, shared, and kept
secure.
The CFPB released a set of nine consumer protection principles to address those issues and
"help safeguard consumer interests as the consumer-authorized
aggregation services market develops." While pointedly
refusing to ease any existing regulatory burden currently on the
banks to ensure safety and privacy,
