ABA, Trade Groups Provide Recommendations on NIST’s Open Banking Report

The American Bankers Association today joined the Bank Policy Institute and the Securities Industry and Financial Markets Association in a comment letter to the National Institute of Standards and Technology offering feedback on the NIST’s draft report on cybersecurity considerations for open banking. The associations noted that the report endorses open banking without examining potential risk or recommending security and privacy measures to mitigate those risks. The groups wrote that the report identifies the importance of cybersecurity when it comes to how companies share sensitive financial data about customers, but warned that it offers a “wholly incomplete picture of the current consumer financial data-sharing ecosystem in the U.S.”

The associations urged NIST to delay further action until after the CFPB proposes an open banking rule as part of the Dodd-Frank Act, consult with market participants and revise the draft report “to include the full suite of risks to consider in an open banking regime to protect consumer data.”