CFPB Releases Open Banking Rule

Posted by John Trull on October 22, 2024

The Consumer Financial Protection Bureau (CFPB) released its final open banking rule statutorily required by section 1033 of Dodd-Frank. The GoWest team is diving into the details of the rule and will share additional information in the coming days.

Upon initial review, the final rule contains two key changes GoWest credit unions advocated for including:

Exemption for Smaller Institutions: The initial proposed rule did not exempt any financial institutions based on size. This was a priority ask when GoWest credit unions met with CFPB Director Rohit Chopra last fall. The final rule includes an exemption threshold set at $850 Million which will be indexed over time.

Staggered Implementation: GoWest credit unions pushed for a phased approach to implementation, ensuring credit unions have sufficient time to adapt. The final rule reflects this staggered timeline.

• Apr. 1, 2026 – Data providers with at least $250 billion in assets;
• Apr. 1, 2027 – Data providers between $10 billion and $250 billion in assets;
• Apr. 1, 2028 – Data providers between $3 billion and $10 billion in assets;
• Apr. 1, 2029 – Data providers between $1.5 billion and $3 billion in assets; and
• Apr. 1, 2030 – Data providers between $850 million and $1.5 billion in assets.

Expected Challenges: We anticipate there will be legal challenges filed in response to this rule. In addition, the rule could change if there is a change in CFPB leadership following the election. Finally, Congress could use the Congressional Review Act to challenge the rule, as has happened with other CFPB regulations.

Conclusion: The Association will be closely monitoring developments and will share additional compliance resources as the implementation deadlines approach. We are committed to supporting our members throughout this process and ensuring you have the tools needed for successful compliance. 

Posted in Advocacy on the Move, Regulatory Advocacy.