Bloomberg Law: Unlocking Consumer Bank Data Stokes Chopra’s ‘Underworld’ Fears

Evan Weinberger and Andrea Vittorio

Consumers who let budgeting apps or payment platforms access their banking data shouldn’t feel as “powerless” about how that information is used if a pending regulation works as planned, said the head of the Consumer Financial Protection Bureau….Making data more portable, as an open banking system would, ensures that a single firm can’t hold a monopoly over it, says the Information Technology and Innovation Foundation.“The point of data portability is making sure there’s not exclusive access to data,” agreed Daniel Castro, vice president of the foundation and director of the Center for Data Innovation. But there are significant risks that CFPB needs to guard against, said Karen Shaw Petrou, managing partner of Federal Financial Analytics. And they’ve grown more ominous since the idea of open banking was proposed as part of the post-financial crisis Dodd-Frank law.