The Consumer Financial Protection Bureau (CFPB) is taking a crucial step towards implementing rules for open banking in the United States. We are now publishing the first application for public comment from an organization seeking recognition as an open banking standard-setter. We invite public comments on this application.
Role of Standard-Setters and Key Attributes
Standard-setters can develop standards that will help ensure a safe, secure, reliable and competitive open banking framework. In June 2024, the CFPB finalized a rule outlining five key qualifications for becoming a recognized standard-setting body in connection with the CFPB’s forthcoming final Personal Financial Data Rights rule:
- Openness: The process must be open to all interested parties.
- Transparency: Procedures must be transparent and publicly available.
- Balanced decision-making: No single special interest should dominate the process. The decision-making power to set standards must be balanced across all interested parties, including consumer and other public interest groups.
- Consensus: Standards development must proceed by consensus, with fair consideration of comments and objections.
- Due process and appeals: The body must use documented, publicly available policies and procedures, including adequate notice of meetings, time for review, and an impartial appeals process.
We are now starting to seek public comment on the merits of applications under these criteria. The first application published for comment is from the Financial Data Exchange. Your input is crucial in evaluating whether FDX is equipped to develop fair and effective open banking standards that serve the interests of all stakeholders, especially consumers.
To review the FDX application and submit comments, visit the CFPB’s Applications for open banking standard setter recognition webpage. Other applications published for public comment will also be posted at that same location.
