CFPB Moves Open Banking Rewrite Closer to Release: What Credit Unions Should Watch

Posted by Erin Hall on August 5, 2026

The Consumer Financial Protection Bureau (CFPB) has taken another significant step in rewriting the rules governing consumer financial data access. On Aug. 5, reports confirmed that the agency has submitted its proposed open banking rule to the White House Office of Management and Budget (OMB) for review, signaling that a public proposal could be released soon.

For credit unions, this development is important because it will shape how consumer financial data is shared among financial institutions, fintech companies, data aggregators, and potentially cryptocurrency firms for years to come.

A Fresh Start for Section 1033

The proposal would implement Section 1033 of the Dodd-Frank Act, which establishes consumers’ rights to access and share their financial data. The new proposal is intended to replace the Biden administration’s open banking rule, which was blocked in court and never fully took effect.

The previous rule prohibited financial institutions from charging data aggregators and fintech companies for access to customer-authorized financial information. According to the report, the Trump administration is now seeking to strike a balance between competing interests as it rewrites the framework.

The Central Debate: Should Access Be Free?

One of the key questions is whether banks and credit unions should be allowed to charge for access to consumer-authorized data.

According to the report:

• Large financial institutions have urged the CFPB to permit fees for access to customer data and to limit the amount of information they must provide.
• Fintech companies, supported by some cryptocurrency industry leaders and retailers, are advocating for, standardized APIs, free access and oppose fees.

The CFPB has reportedly considered a compromise that could require financial institutions to provide a baseline level of consumer data at no cost while allowing fees once requests exceed specified thresholds. The agency may also seek public comment on how those thresholds should be established.

What This Means for Credit Unions

While the proposal has not yet been released, several issues are likely to be top of mind for credit unions:

Cost Recovery
Many financial institutions have argued that maintaining secure application programming interfaces (APIs), cybersecurity controls, and data-sharing infrastructure creates real operational costs. Any future framework that permits cost recovery could help offset those expenses. The article notes that fee structures remain under active consideration.

Data Security and Liability
As more consumer data flows between financial institutions and third parties, questions surrounding security standards, consumer consent, and liability remain critical. Credit unions will want to closely evaluate how the proposal allocates responsibilities among data providers, aggregators, and end users.

Competition and Innovation
A finalized Section 1033 rule will affect how credit unions compete with fintech providers. Easier data portability can support innovation and member choice, but credit unions also have an interest in ensuring that third parties accessing member data meet appropriate security and compliance standards.

Leadership Changes Could Influence the Outcome

The proposal arrives during a period of leadership transition at the CFPB. Russ Vought, who served as acting CFPB director until Aug. 1, recently told lawmakers the agency was “very close” to releasing the proposal. He now remains OMB director, where his office is reviewing the rule. Mark Paoletta is currently serving as acting CFPB director, while the Senate continues to consider Brian Johnson’s nomination to lead the agency permanently.

What’s Next?

OMB review is typically one of the final steps before a proposed rule is released publicly. Once published, the CFPB is expected to open a comment period that will give credit unions, trade associations, fintech companies, and other stakeholders the opportunity to provide feedback.

Given the importance of data-sharing requirements, pricing structures, and operational obligations, credit unions should be prepared to review the proposal closely when it is issued.

GoWest’s Take

The open banking debate has evolved beyond data access alone. The next version of the CFPB’s Section 1033 rule will help determine who bears the costs of maintaining secure data-sharing systems and how financial institutions balance consumer choice with safety and soundness concerns.

For credit unions, the stakes are significant. The final framework could affect technology investments, vendor relationships, risk management practices, and the competitive landscape for years to come. GoWest will continue monitoring developments and provide analysis once the CFPB releases the proposed rule.

Posted in Advocacy on the Move, Regulatory Advocacy.