CFPB to begin soliciting small-bank input on data-sharing rule this week 

During an industry event today, Consumer Financial Protection Bureau Director Rohit Chopra said his agency will begin seeking public guidance this week on its much-anticipated data-sharing rule. Before issuing a proposed rule, the CFPB must convene a panel of small businesses that represent their markets to provide input, Chopra said, noting that a discussion guide for small firms will be released this week. The agency then will publish a report in the first quarter of 2023 based on the comments it receives.

The CFPB has been engaged in rulemaking under Section 1033 of the Dodd-Frank Act to establish standards for sharing consumer financial data, typically through third parties, in a secure and transparent manner that gives consumers control. The proposed rule is expected later in 2023. “We then hope to finalize the rule in 2024 and move to implementation,” Chopra said.

“We’ll hear from small banks and financial companies who will be providers of data, as well as the small banks and financial companies who will ingest the data,” he said. “We will also gather input from the ‘fourth parties,’ the intermediary data brokers that facilitate data transfers.”