Despite having more consumer financial data than ever before, many financial providers struggle to get the most value from it.

Want to learn more about how consumer financial data unlocks growth opportunities?

A recent Forrester Consulting study, commissioned by MX, explores how financial institutions use consumer-permissioned financial data.

The Unrealized Value of Consumer Financial Data | MX Blog

Despite having access to more consumer financial data than ever before, many financial providers struggle to extract value from it &mdash; missing opportunities to improve outcomes for both their customers and business.
The value of data is not disputed, but most firms struggle to effectively maximize the use of consumer financial data across their businesses, leaving customer and business benefits unrealized. What&rsquo;s worse: They know this is the case.
A recent Forrester Consulting study, commissioned by MX, surveyed 150 data strategy leaders in North American financial institutions about the importance of the effective use of consumer-permissioned financial data. Here&rsquo;s a quick summary:
Want to learn more? Read the <a href="https://www.mx.com/research/opportunity-growth-financial-services/" target="_blank" rel="noopener">full study here</a>.
The Good: The Benefits of Financial Data Intelligence are Vast
Financial institutions recognize the value of financial data intelligence and the majority (79%) believe it is critical to their organization&rsquo;s success in the future. Leaders also understand that a significant improvement in the ability to utilize consumer financial data could be transformational. Expected benefits include:&nbsp;
<img src="https://cms.mx.com/assets/53fc54ba-a98c-4ac7-be20-6cd2fcbd0fd3?width=435&amp;height=523" alt="Screenshot 2024 03 27 at 2.50.32 pm" />
The Bad: Most Financial Providers Still Largely Use Data the Same Way&nbsp;
Many financial services providers are just starting the journey to maximize the power of consumer financial data for both customer and business benefits. Sixty-two percent of data strategy respondents say their organization still largely uses data the same way they always have. And, when asked which use cases &mdash;&nbsp;like providing personalized insights, monitoring and managing where consumers share financial data, and making informed decisions &mdash;&nbsp;they were capable of today, no single use case had an adoption rate higher than 67%.&nbsp;
The Opportunity: Investing in the Right Partner, Processes, and Technology
To unlock the full value of consumer-permissioned financial data, financial providers should be prepared to break down silos, invest in technologies and improved automation, and search for the right data partner.&nbsp;
And, it doesn&rsquo;t mean rebuilding their data programs from the ground up. Here are the steps data strategy leaders are taking:
<img src="https://cms.mx.com/assets/22259b32-2b52-468a-971f-3054ad4be620?width=435&amp;height=523" alt="Screenshot 2024 03 27 at 2.49.50 pm" />
According to Nandita Gupta, MX&rsquo;s Chief Product Officer, &ldquo;intelligence locked away is intelligence wasted. Too many institutions are trapped in this paradox of owning raw information, but not getting any value from it.&rdquo;&nbsp;
Financial institutions recognize this challenge and have significant opportunities to do more with consumer-permissioned financial data. Are you making the most of your financial data?&nbsp;

Consumer-permissioned financial data can fuel growth and improve outcomes for financial services providers. A recent Forrester Consulting study, commissioned by MX, explores how data is currently used and what opportunities can be unlocked.

The Good, Bad, and Opportunities in How Financial Institutions Leverage Consumer Financial Data

Financial data intelligence makes financial data actionable to increase engagement, improve results, and drive growth.

Financial data intelligence is the ability to make financial data actionable to increase engagement and loyalty, improve results, and drive growth. 

What is Financial Data Intelligence? Definitions and Benefits

In this post, we will cover: 
<ul>
<li><a href="#what-is-financial-data-intelligence">What is Financial Data Intelligence?</a></li>
<li><a href="#definitions">Financial Data Intelligence vs. Data Analytics, and Other Terms</a></li>
<li><a href="#how-financial-data-intelligence-works">How Financial Data Intelligence Works</a></li>
<li><a href="#benefits-financial-data-intelligence">Benefits of Financial Data Intelligence</a></li>
</ul>
<h2 id="what-is-financial-data-intelligence">What is Financial Data Intelligence?&nbsp;</h2>
Vast amounts of consumer financial data are generated daily by each and every consumer. One transaction alone can mean dozens of data points. As a result, banks, credit unions, fintechs, and other financial providers are sitting on mountains of financial data.&nbsp;
However, the majority of financial institutions and fintechs don&rsquo;t have a good way to unlock the value of this data to drive better business and consumer outcomes. But, data is just data. You need to <a href="https://www.mx.com/guides/2024-digital-banking-playbook/">create an actionable step</a> for your customers.
That&rsquo;s where financial data intelligence comes into the picture. Financial data intelligence is the ability to make financial data actionable to increase engagement and loyalty, improve results, and drive growth.&nbsp;
<h2 id="definitions">Financial Data Intelligence vs. Data Analytics, and Other Terms</h2>
Financial data intelligence is a term specific to how organizations leverage consumer financial data. It is a subset of a broader term &mdash;&nbsp;data intelligence, which is used across many industries such as retail, healthcare, manufacturing, etc., when talking about deriving actionable insights from data. Data intelligence is the tools and methods that organizations use to better understand the data they collect, store, and utilize to improve their products and/or services.&nbsp;
Other organizations may refer to similar terms including data analytics and business intelligence when referring to how they analyze data. However, we think data analytics misses a key component that is present with data intelligence: making it actionable. Analysis without action is simply interesting information. To create true data intelligence, the data and insights must be actionable.&nbsp;
<blockquote>
Analysis without action is simply interesting information. To create true data intelligence, the data and insights must be actionable.&nbsp;
</blockquote>
Another similar term that is worth mentioning is &ldquo;<a href="https://en.wikipedia.org/wiki/Financial_intelligence">financial intelligence</a>.&rdquo; What is financial intelligence? It&rsquo;s defined as gathering information about the &ldquo;financial affairs of entities of interest, to understand their nature and capabilities, and predict their intentions.&rdquo; It&rsquo;s often used in conjunction with an investigation of a specific entity by law enforcement or related agencies. In fact, the United States government has an <a href="https://en.wikipedia.org/wiki/Under_Secretary_of_the_Treasury_for_Terrorism_and_Financial_Intelligence">under secretary position within the Department of the Treasury</a> dedicated to terrorism and financial intelligence.&nbsp;
<h2 id="how-financial-data-intelligence-works">How Financial Data Intelligence Works</h2>
It starts with being able to effectively <a href="https://www.mx.com/products/connectivity/">connect</a> to, understand, and act on consumer financial data.&nbsp;
<h3>Connecting the Dots</h3>
Today&rsquo;s <a href="https://www.mx.com/research/what-consumers-want-from-financial-providers/">average consumer has 3 to 5 financial accounts</a> with various banks, credit unions, and other financial providers. It&rsquo;s messy for consumers to manage and makes it increasingly difficult for financial providers to get a full picture of consumers&rsquo; financial lives.&nbsp;
This disjointed <a href="https://www.mx.com/money-experience/">money experience</a> creates blindspots for organizations when it comes to delivering the right products and services to meet consumer needs, targeting consumers with the right messages, and accurately predicting and preventing churn.&nbsp;
By enabling consumers to easily connect and view all of their finances in one place with <a href="https://www.mx.com/products/account-aggregation/">financial account aggregation</a>, it not only helps consumers better manage their money but gives financial providers more visibility into consumer financial data.&nbsp;
<h3>Understanding the Data</h3>
As we stated earlier, data is just data. It requires context, cleansing, and categorization to ensure both consumers and organizations can leverage data to its fullest extent.&nbsp;
With cleansing and categorization, raw data becomes clear transaction information. And, with added context, transaction data becomes more insightful and actionable for consumers. <a href="https://www.mx.com/products/data/">Enhanced data</a> also makes it easier to unlock the value of financial data and enable better decisions, improve efficiency, and uncover new opportunities.
<h3>Creating Actionable Insights and Personalized Experiences</h3>
The last piece of the puzzle is how you leverage the data to <a href="https://www.mx.com/blog/personal-data-in-exchange-for-personalized-experiences/">create personalized experiences</a>, deliver proactive insights, and drive engagement and growth.&nbsp;
Financial data intelligence combines connected and enhanced data with the power of artificial intelligence, machine learning, and advanced analytics. It helps financial service providers to increase engagement with consumers by delivering insights and recommended actions to help them on their financial journey and surface new insights and areas of opportunity to drive growth.&nbsp;&nbsp;
<div style="padding: 56.25% 0 0 0; position: relative;"><iframe style="position: absolute; top: 0; left: 0; width: 100%; height: 100%;" title="Financial Data Intelligence Promo - Sachi - March 2024" src="https://player.vimeo.com/video/928032801?h=4c12f88c79&amp;badge=0&amp;autopause=0&amp;player_id=0&amp;app_id=58479" frameborder="0"></iframe></div>
<h3>The Benefits of Financial Data Intelligence&nbsp;</h3>
Simply put: with actionable financial data intelligence, financial providers can increase engagement and loyalty, acquire more customers, and identify growth opportunities. And, financial providers can help their customers better understand and manage their finances.&nbsp;
Here&rsquo;s a look at our top 10 benefits of financial data intelligence:&nbsp;
<ol>
<li style="font-weight: 400;" aria-level="1">Acquire and retain more customers with <a href="https://www.mx.com/products/connectivity/">reliable connectivity solutions</a>, <a href="https://www.mx.com/products/data/">enhanced data</a>, and <a href="https://www.mx.com/products/experience/">personalized digital experiences</a>.</li>
<li style="font-weight: 400;" aria-level="1">Increase consumer engagement and adoption by delivering <a href="https://www.mx.com/products/financial-insights/">personalized financial insights</a> and recommended actions.</li>
<li style="font-weight: 400;" aria-level="1">Surface areas of opportunity to increase deposits, expand <a href="https://www.mx.com/use-cases/account-opening/">account openings</a>, and engage with your customers.</li>
<li style="font-weight: 400;" aria-level="1">Improve financial health by enabling consumers to better understand and manage their finances with <a href="https://www.mx.com/products/personal-financial-management/">Personal Financial Management (PFM) tools</a>.</li>
<li style="font-weight: 400;" aria-level="1">Deliver the right message, to the right person, at the right time to<a href="https://www.mx.com/products/customer-analytics/"> improve ROI and marketing campaign effectiveness</a>.</li>
<li style="font-weight: 400;" aria-level="1">Predict and prevent churn with a better understanding of trends and behaviors</li>
<li style="font-weight: 400;" aria-level="1">Increase customer satisfaction and loyalty with <a href="https://www.mx.com/products/experience/">personalized experiences</a> that meet consumers where they are.</li>
<li style="font-weight: 400;" aria-level="1">Optimize business processes by breaking down data silos and making it easier to unlock the value of financial data.</li>
<li style="font-weight: 400;" aria-level="1"><a href="https://www.mx.com/case-studies/becu/call-center/">Reduce call center volume</a> and customer frustration by making data easily understandable and actionable.</li>
<li style="font-weight: 400;" aria-level="1">Accelerate innovation and product enhancements based on actionable data about product adoption, usage, and behaviors.</li>
</ol>

What is Financial Data Intelligence? How it Works, Key Definitions & Benefits

The CFPB's NPRM for Section 1033 is an important milestone in ensuring consumers have the right to their financial information. 

Join us on Monday, November 6, for a virtual roundtable discussion to ask questions and share your perspective. 

The Consumer Financial Protection Bureau (CFPB) NPRM for Section 1033 is a milestone for consumers to have the right to access and control their financial information.

U.S. Consumer Financial Data Rights | CFPB Section 1033

At MX, we believe in the power of financial data to unlock new insights and drive better money experiences that benefit companies and consumers alike. An open finance ecosystem &mdash; where everyone can access and act on financial data &mdash;&nbsp;enables smarter, faster, and more reliable money experiences.&nbsp;
However, until now, consumer financial data access and control has primarily been left up to the financial institutions, fintechs, and other third parties involved. MX has been working with our customers, partners and the wider ecosystem to accelerate Open Banking and secure data sharing for the past 5 years. The Consumer Financial Protection Bureau (CFPB) <a href="https://www.consumerfinance.gov/about-us/newsroom/cfpb-proposes-rule-to-jumpstart-competition-and-accelerate-shift-to-open-banking/">recently published its long-awaited notice of proposed rulemaking (NPRM) for personal financial data rights under Dodd-Frank Act Section 1033</a>.&nbsp;
This is an important milestone in making sure consumers have the right to access and control their financial information. We believe that it will lay the groundwork for the United States to move into the next chapter of fintech innovation. A clear, cross-agency regulatory framework will accelerate adoption of Open Finance, improve the money experience, and help drive better financial outcomes for millions of Americans.&nbsp;
<blockquote>
<a href="https://www.mx.com/preview/?collection=events&amp;url=cfpb-rulemaking-roundtable/11062023">Join MX and FS Vector for a virtual roundtable on Nov. 6 at 12 p.m. ET. Click to register.&nbsp;</a>
</blockquote>
As the CFPB works towards this final rulemaking, here are three things financial institutions, fintechs, and other data providers and recipients can do today:&nbsp;
<ol>
<li style="font-weight: 400;" aria-level="1"><a href="https://www.consumerfinance.gov/about-us/newsroom/cfpb-proposes-rule-to-jumpstart-competition-and-accelerate-shift-to-open-banking/">Read the proposed rule</a> to make you understand what this means for your organization, including types of data covered and how it will impact your processes, technology, and systems. (See below for our summary on what this NPRM includes)</li>
<li style="font-weight: 400;" aria-level="1">Help inform the final rulemaking by providing commentary to the CFPB ahead of its comments deadline on December 29.&nbsp;</li>
<li style="font-weight: 400;" aria-level="1">Understand where your organization will fall on the timeline to be compliant &mdash; and start planning budgets and resources needed to meet these deadlines. Larger organizations (based on total assets or revenue) will have a heavier lift in the short term to meet requirements in the first six months, while others will have at least 1 year or more.&nbsp;</li>
</ol>
<h2>What is Section 1033?&nbsp;</h2>
In 2010, Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). Section 1033 authorizes the CFPB to prescribe rules requiring &ldquo;a covered person [to] make available to a consumer, upon request, information in the control or possession of the covered person concerning the consumer financial product or service that the consumer obtained from such covered person, including information relating to any transaction, series of transactions, or to the account including costs, charges and usage data.&rdquo;
<h2>What Does the Notice of Proposed Rulemaking Include?&nbsp;</h2>
It&rsquo;s important to note that the CFPB isn&rsquo;t attempting to cover the entire financial ecosystem with its initial proposed rulemaking. The <a href="https://www.consumerfinance.gov/rules-policy/notice-opportunities-comment/open-notices/required-rulemaking-on-personal-financial-data-rights/">NPRM calls out Regulation E accounts and Regulation Z credit card accounts to start</a>. This includes checking accounts, savings accounts, credit cards, prepaid cards, digital wallets, and other electronic payments.&nbsp;
Any data provider, financial institution, card issuer, or other entity that controls or possesses information concerning one of these covered products or services will be subject to this ruling. We expect more financial products, such as investments, loans, mortgages, etc., to be added over time.&nbsp;
<h2>What&rsquo;s Next</h2>
The CFPB is currently seeking comments on or before December 29, 2023, on any aspect of this proposal, with plans to finalize and issue the final ruling by Fall 2024. MX will actively participate in the comment period. We look forward to collaborating with our clients and partners to ensure a wide spectrum of voices are represented, including industry partners such as the <a href="https://www.mx.com/blog/why-fdx-matters/">Financial Data Exchange</a> &mdash;&nbsp;particularly around creating industry standards that drive collaboration and innovation to deliver the outcomes consumers need and deserve.&nbsp;
<a href="https://www.consumerfinance.gov/about-us/newsroom/prepared-remarks-of-cfpb-director-rohit-chopra-on-the-proposed-personal-financial-data-rights-rule/">Director Chopra said in his prepared remarks</a> that the CFPB will also &ldquo;be issuing additional information on how industry standard-setting organizations can obtain recognition from the CFPB. Market players will be able to look to these standards, which will evolve with time as technology progresses, to be part of the new open banking ecosystem in the United States. We also intend to cover additional product types in future rulemaking, to continue to foster more competition and consumer choice throughout the market.&rdquo;&nbsp;
Once the final rule is published, the CFPB NPRM currently outlines 4 compliance dates for data providers based on asset size or revenue:&nbsp;
<table>
<tbody>
<tr>
<td>
Compliance Deadlines
</td>
<td>
Applicable Data Providers
</td>
</tr>
<tr>
<td>
6 Months After Publication
</td>
<td>
Depository Institutions that hold at least $500B in total assets
Non-depository institutions with at least $10B in revenue
</td>
</tr>
<tr>
<td>
1 Year After Publication
</td>
<td>
Depository institutions with at least $50B in total assets (but less than $500B)
Non-depository institutions with less than $10B in revenue
</td>
</tr>
<tr>
<td>
2.5 Years After Publication
</td>
<td>
Depository institutions with at least $850M in total assets
</td>
</tr>
<tr>
<td>
4 Years After Publication
</td>
<td>
Depository institutions with less than $850M in total assets
</td>
</tr>
</tbody>
</table>
<h2>Why Consumer Financial Data Rights Matter</h2>
<a href="https://www.mx.com/whitepapers/open-finance-creates-a-better-money-experience/">Today&rsquo;s money experience is inherently messy</a> both for consumers and financial providers seeking to meet increasingly complex consumer needs. Consumers must look across a multitude of financial accounts to try to manage their financial life &mdash;&nbsp;with most maintaining relationships with an average of 5 to 10 different financial services organizations, from their primary bank to PayPal and Venmo to various credit cards, investment accounts, and loans. And, today&rsquo;s closed financial ecosystem makes it difficult for consumers to switch to a new financial provider or take their financial data with them.&nbsp;&nbsp;
We&rsquo;ve all heard the expression that knowledge is power. Engaging with their finances on multiple platforms means they don&rsquo;t have a consolidated view of their financial data or who may be accessing it. And, if they ever choose to leave their current providers, it&rsquo;s not easy to transfer and take their financial data with them.&nbsp;
Consumers should own, have access to, and have the ability to control all their financial data. Full stop. And, <a href="https://www.mx.com/research/what-influences-where-consumers-choose-to-bank/">consumers overwhelmingly agree (82%) that they own their financial data</a> and should be able to control who has access to it.&nbsp;
This empowers consumers to better understand their finances and make financial decisions that will improve their overall health (e.g., seek improved interest rates, increase savings rates, etc.) &mdash;&nbsp;as well as spur innovation and competition in the marketplace.&nbsp;
<h2>Why Standardized APIs are Important</h2>
Most financial data sharing still relies on less reliable and less secure methods that require consumers to share credentials with a third party. This screen scraping or credential sharing is less reliable and places a heavy technical burden on bank infrastructure, which creates an unstable customer experience. Connections frequently break as passwords, systems, and processes change.&nbsp;
This leads to frustration and could potentially cost businesses customers in the long run. Screen scraping also puts consumers and businesses at increased risk since it requires consumers to provide usernames and passwords to a third party. And, consumers may be left wondering who has access to their data while businesses have little visibility into where data is shared.
An open banking or open finance application programming interface (API) allows consumers to access their transaction data without the need to share usernames and passwords, and eliminates the technical burden of screen scraping. Direct connections replace credentials with tokens, delivering higher levels of security, faster speeds, and higher connection success rates.&nbsp;
<h2>How MX Can Help</h2>
MX is making it easier than ever for financial institutions of all sizes to accelerate open finance adoption and enhance the money experience for consumers through Data Access. The platform enables institutions to deliver a safe and secure connectivity experience for their customers. With consumer authorized and permissioned data sharing, customers gain visibility and control over which apps and institutions access their data &mdash; enabling them to grant, manage, and revoke access at any time.&nbsp;
<a href="https://www.mx.com/products/data-access/">Data Access</a> is an open API platform built on FDX standards that improves time-to-market and reduces costs to deliver secure data sharing, as well as provide the groundwork for greater insights about customer behaviors, trends, and needs. It provides financial institutions with the ability to monitor and manage where consumers are sharing their financial data and the tools to implement a more secure data-sharing experience with token-based connectivity.

U.S. Consumer Financial Data Rights are Almost Here

At MX, we believe the future of our industry means embracing Open Finance, which begins with secure and reliable access for consumers to share their data. 

Want to learn how we can help you with your open finance strategy?

Want to learn how MX can help you with your open finance strategy?

Open Finance is the next step beyond Open Banking, enabling access and sharing of consumer data to even more financial products and services — not just banking.

What is Open Finance? Definitions, Benefits, and APIs

What is Open Finance? What it Means, Benefits, and APIs

Here is a curated list of consumer data and statistics related to financial wellness from MX’s collection of research reports.

Check out MX’s research and stats related to consumer financial wellness and expectations. 

Consumer Financial Wellness Stats, Expectations, Graphics, and More | MX 

This is a curated list of consumer statistics and graphs related to financial wellness from MX’s research reports.

Statistics on Consumer Financial Wellness and Personal Financial Management

Here is a round-up of consumer data and statistics related to mobile banking from MX’s collection of consumer research reports.

Check out consumer data and stats related to mobile banking from MX on usage, generational attitudes, financial wellness, security, and open finance. 

Mobile Banking Stats on Usage, Adoption, Generations, and More | MX

The Ultimate List of Mobile Banking Trends and Statistics (2024)

It's critical for financial providers to leverage financial data in order to meet rising consumer expectations.

Want to learn more about how to unlock the full value of consumer financial data?

How can financial providers deliver the money experiences consumers now expect? The key lies in consumer-permissioned financial data.

Leveraging Financial Data Intelligence to Improve Outcomes | MX Blog

Consumers today have more money in more places than ever before, and as a result, often don&rsquo;t have a holistic view of their financial lives. This makes it challenging for both the consumer and their financial services providers to get a clear picture of their finances. It&rsquo;s more difficult for consumers to understand, monitor, and manage their finances. And, financial providers struggle to truly understand consumer needs and personalize products, services, and experiences to meet consumers where they are.&nbsp;
Today&rsquo;s consumers also expect more: <a href="https://www.mx.com/research/what-influences-where-consumers-choose-to-bank/">57% of consumers want their financial provider&rsquo;s help</a> to better manage their finances and 54% believe financial providers have a responsibility to teach them to be financially strong.
How can financial services providers deliver the proactive, personalized money experiences consumers now expect? Fortunately, financial institutions and fintechs already have the key component required: consumer-permissioned financial data. And, MX found that 48% of consumers would <a href="https://www.mx.com/research/how-to-keep-consumers-from-breaking-up-with-banks/">give their financial provider access to more of their data</a> if they knew it would result in a better experience.&nbsp;
However, data left unrefined and kept in silos doesn&rsquo;t do much on its own. It must be enhanced and made actionable in order to reap the benefits.&nbsp;
A recent study of 150 data strategy leaders in North American financial institutions, conducted by Forrester Consulting and commissioned by MX, found that, while financial services leaders agree on the value of data, the majority of organizations still struggle to effectively leverage that data to drive value for both consumers and their businesses.
For financial providers to deliver personalized money experiences that help consumers build financial strength, the ability to effectively connect to, understand, and act on consumer financial data is key. Cue <a href="https://www.mx.com/blog/what-is-financial-data-intelligence/">financial data intelligence</a>. It&rsquo;s the ability to make financial data actionable to increase engagement and loyalty, improve results, and drive growth.&nbsp;
Powered by connected and enhanced data, financial data intelligence enables financial providers to deliver insights and recommended actions that help consumers on their financial journey, improving outcomes for both the consumer and the business in the process.&nbsp;&nbsp;

Leveraging financial data is the key to financial providers delivering the money experiences consumers now expect.

How Financial Data Intelligence Improves Consumer and Business Outcomes

Consumer Reports recently dove deep into 10 banking apps to see which ones performed best. Here’s a few key takeaways to consider


See how embedded financial wellness tools and insights drive mobile banking success. 

Mobile banking applications top the list of what’s most important in choosing a financial provider. MX shares takeaways from Consumer Reports’ analysis of 10 apps.

Consumer Reports on Mobile Banking Apps | Key Takeaways

Our most recent consumer research found that <a href="https://www.mx.com/research/how-to-keep-consumers-from-breaking-up-with-banks/">mobile banking applications top the list of what&rsquo;s most important in choosing a financial provider</a>. In fact, nearly 1 in 4 U.S. consumers (23%) say &ldquo;offers a mobile banking app&rdquo; is the top factor when choosing a financial provider. But what actually makes a good mobile banking app?&nbsp;
Consumer Reports recently <a href="https://advocacy.consumerreports.org/research/banking-apps-the-case-study-for-a-digital-finance-standard/">dove deep into 10 banking apps to see which ones performed best</a> against CR&rsquo;s Fair Digital Finance Framework, a way to evaluate digital financial tools in terms of safety, privacy, transparency, user-centricity, support for financial well-being, and inclusivity. Here&rsquo;s a few key takeaways from CR&rsquo;s evaluation to consider:&nbsp;
<h2>Help Consumers Get Better at Budgeting and Saving</h2>
Nearly every banking app that CR researchers reviewed had features including automated savings, the ability to split direct deposits into different accounts, tools to help set goals or budgets, and spending trackers.&nbsp;
Consumers want &mdash; and expect &mdash;&nbsp;help to manage their finances. More than half of consumers agree they want their financial provider to <a href="https://www.mx.com/research/how-to-keep-consumers-from-breaking-up-with-banks/">help them better manage their finances</a> (57%). Personal financial management (PFM) tools and insights have the potential to become a significant differentiator for the average consumer.&nbsp;
<h2>Protect Personal Information &mdash;&nbsp;and Put Consumers in Control</h2>
According to the report, &ldquo;most banking service providers tend to share more data than needed to deliver their core service, while only some banking apps offer the ability to opt out of targeted advertising.&rdquo;
What&rsquo;s more, a <a href="https://article.images.consumerreports.org/image/upload/v1704482298/prod/content/dam/surveys/Consumer_Reports_AES_December-2023.pdf">CR survey from December 2023</a> found 57% of people were at least somewhat concerned when told that banks may share this kind of information without letting them know. Another quarter said they didn&rsquo;t even know banks did this.&nbsp;
Financial providers have a responsibility &mdash; and soon a regulatory mandate &mdash; to ensure consumers own, have access to, and can control who has access to their personal financial data. And, 82% of consumers agree they <a href="https://www.mx.com/research/what-influences-where-consumers-choose-to-bank/">own their financial data and should be able to control who has access to it</a>.&nbsp;
<h2>Make the Experience Accessible and Easy</h2>
A mobile banking app should be easy to use for any individual. But, the reality is that most banking apps don&rsquo;t have the same level of accessibility features across the board. Language and disability should not be a barrier to using banking apps.&nbsp;
Beyond accessibility &mdash; which should be standard, consumers also have less patience than ever for sub-par experiences and overly complicated processes. Minimizing the steps &mdash; or searching &mdash; required to find information or take action is essential to driving high adoption and engagement.&nbsp;
<h2>Leverage Real-Time Alerts to Protect Against Fraud</h2>
The study found that some banking service providers do not explicitly commit to monitoring fraud in real time and to notifying users in the event of suspicious activity. As the risks of fraud continue to rise, banking apps can do more to support and reassure consumers.&nbsp;
Consumers need a trusted partner to help protect them from fraud and other security risks. ANd, 84% of consumers agree they <a href="https://www.mx.com/research/what-influences-where-consumers-choose-to-bank/">expect their financial provider to proactively alert them</a> when something looks suspicious.&nbsp;

How Do Mobile Banking Apps Stack Up? Meeting Consumer Needs

Customer analytics enables financial institutions to derive insights from data to drive better outcomes

Customer analytics enables financial providers to derive insights from financial data to better meet consumer needs and improve outcomes.

What is Customer Analytics for Financial Services? | MX Blog

In this post, we will cover:
<ul>
<li><a href="#what-is-customer-analytics">What is Customer Analytics?</a></li>
<li><a href="#how-banks-use-ca">How Do Banks and Financial Institutions Use Customer Analytics?</a></li>
<li><a href="#benefits-of-ca">Benefits of Customer Analytics&nbsp;</a></li>
<li><a href="#mx-customer-analytics">Leveraging MX Customer Analytics</a></li>
</ul>
<h2 id="what-is-customer-analytics">What is Customer Analytics?</h2>
Customer analytics is using data to understand the composition, needs, and satisfaction of the customer. <a href="https://www.mx.com/products/customer-analytics/">Customer analytics tools</a> often include technology that enables organizations to easily create customer personas and segment customers into groups based on demographics, behaviors, or other factors.&nbsp;
Within the financial services industry, customer analytics leverages <a href="https://www.mx.com/blog/what-is-consumer-permissioned-data/">consumer-permissioned financial data</a> &mdash; such as account information, spending behaviors, transaction history, etc. &mdash;&nbsp;to better understand consumers and create more targeted, personalized services, products, and offers.&nbsp;
In today&rsquo;s digital-first, hyper-personalized world, <a href="https://www.mx.com/research/how-to-keep-consumers-from-breaking-up-with-banks/">consumers expect their financial providers to know them</a> &mdash;&nbsp;MX&rsquo;s latest consumer research found that more than half of U.S. consumers (54%) expect this. Financial institutions and fintechs have a wealth of data about their consumers. However, data on its own is just data.&nbsp;
Customer analytics enables financial institutions and other financial providers to derive insights from this data so that they can better meet consumer needs and drive better outcomes. And, most consumers (54%) want financial providers to leverage that data to personalize their experience.
<h2 id="how-banks-use-ca">How Do Banks and Financial Institutions Use Customer Analytics?</h2>
Banks, credit unions and other financial institutions leverage customer analytics in a number of ways to drive results for both their customers and businesses. This includes everything from acquiring new customers and driving engagement to uncovering new growth opportunities. Let&rsquo;s look at each of these areas in more detail.&nbsp;
<h3>Acquire More Customers</h3>
New customer acquisition is a critical component to any bank&rsquo;s success. Customer analytics helps financial institutions better identify and acquire new customers with insights into who their customers are and what they want. This enables banks to develop better products and services that are informed by customer needs and behaviors. Customer analytics also enables financial providers to better categorize, segment, and target current and potential customers based on key factors so that they can reach them with the right message and the right products.&nbsp;
<h3>Increase Engagement and Adoption</h3>
Reducing churn and fostering deeper customer engagement is imperative for sustained growth. By leveraging actionable <a href="https://www.mx.com/blog/what-is-financial-data-intelligence/">financial data intelligence</a>, financial providers can deliver hyper-personalized experiences that resonate with the unique preferences and behaviors of each customer.&nbsp;
<h3>Drive Incremental Growth</h3>
By analyzing held, aggregated, and discovered account data, financial providers can surface areas of opportunity to expand and engage with customers in new ways.&nbsp;
<h2 id="benefits-of-ca">Benefits of Customer Analytics</h2>
With customer analytics, organizations can gain a better understanding of their customers&rsquo; financial lives, including things like spending behaviors, primary and held-away deposit accounts, estimated monthly income, and product adoption. With this financial data intelligence, the benefits can be significant.
Here are the top 5 benefits of leveraging customer analytics:
<ol>
<li>Increase engagement by delivering the right message at the right time in each customer&rsquo;s journey</li>
<li>Predict and prevent customer churn with a better understanding of trends and behaviors</li>
<li>Increase marketing effectiveness by using data to curate an appropriate and timely campaign</li>
<li>Uncover cross-sell opportunities and gain share of wallet</li>
<li>Increase customer satisfaction and loyalty with personalized experiences that meet consumers where they are</li>
</ol>
<h2 id="mx-customer-analytics">Leveraging MX Customer Analytics</h2>
With MX&rsquo;s <a href="https://www.mx.com/products/customer-analytics/">Customer Analytics</a>, organizations can gain a more comprehensive picture of their customers&rsquo; financial lives &mdash;&nbsp;allowing them to improve customer segmentation and marketing strategies. It combines consumer-permissioned and enhanced transaction data into a centralized, comprehensive set of intelligent models, dashboards, and analytics tools all of which can be easily embedded into marketing automation platforms and CRMs.
Powered by artificial intelligence and machine learning, Customer Analytics helps financial services providers:
<ul>
<li>Gain a more comprehensive picture of their customers&rsquo; financial lives with a centralized, comprehensive set of intelligent models, dashboards, and analytics tools all of which can be easily embedded into marketing automation platforms and CRMs</li>
<li>Easily uncover cross-sell opportunities and target consumers based on personas, product adoption, and financial behaviors</li>
<li>Engage consumers and achieve a higher ROI on marketing spend and campaigns with better audience segmentation that is easily exported into their preferred marketing, social media, CRM platforms, and data warehouses</li>
<li>Identify external accounts, balances, and interest rates for credit cards, mortgages, and&nbsp; loans to inform product roadmaps and improve targeted messages&nbsp;</li>
<li>Predict and prevent churn based on analysis of de-identified data, trends, and strategic recommendations&nbsp;</li>
<li>Embed financial insights and relevant offers that meet consumers where they are with personalized money experiences &ndash; enhanced by MX's Financial Wellness and Insights tools</li>
</ul>

What is Customer Analytics? How Financial Services Use It and Why It Matters

As the financial landscape continues to evolve, we explore the strategies top banks use to generate income and revenue.

MX breaks down how financial institutions in the United States generate income and revenue.

How the Biggest Banks Make Money

To the general public, it may seem like a bank is a bank is a bank. However, financial institutions can differ greatly in structure. And, the financial industry continues to evolve, becoming more complex to understand and navigate. To judge strategic success, we look to revenues, bottom lines, and equity prices.&nbsp;
There are a few key ways that banks and other financial institutions generate income and revenue. At its simplest, banks make money primarily in two ways &mdash; investment banking and commercial banking.
<h2>What is Investment Banking?</h2>
Investment banking refers to services that banks provide to corporations, governments, and other high net-worth individuals such as wealth management, corporate transactions, and corporate activities like mergers and acquisitions or initial public offerings (IPOs).&nbsp;
<h2>What is Commercial Banking?</h2>
Commercial banking focuses on products and services designed for individual consumers and businesses. Think checking and savings accounts, credit cards, mortgages, auto loans, and other types of personal loans.
<h2>How the Biggest U.S. Banks Make Money</h2>
Within the commercial banking world, hundreds of banks, including the <a href="https://www.mx.com/blog/biggest-banks-by-asset-size-united-states/" target="_blank" rel="noopener">biggest U.S. banks with the largest assets</a>, rely on a mix of strategies to generate revenue. There are three key areas where banks generate revenue:
<h3>Fees</h3>
Any consumer with a bank account is familiar with bank fees. This can include anything from monthly account fees and out of network fees to overdraft and insufficient funds fees to origination fees for issuing new loans. For instance, the typical overdraft fee is $15 when a customer spends more than the amount available in their account. Overdrafts, and other fees, can be a significant source of bank revenue &mdash; the Financial Health Network reports banks and credit unions collected an estimated <a href="https://finhealthnetwork.org/research/overdraft-trends-amid-historic-policy-shifts/" target="_blank" rel="noopener">$9.9 billion in total overdraft/NSF fee revenue in 2022</a>.&nbsp;
The Consumer Financial Protection Bureau (CFPB) is scrutinizing fees for financial services to help lessen the burden on consumers &mdash; and has proposed <a href="https://www.consumerfinance.gov/rules-policy/junk-fees/" target="_blank" rel="noopener">several rules to eliminate &ldquo;junk fees&rdquo;</a> like overdraft charges, excessive credit card late fees, and more.
<h2>Credit and Lending</h2>
Beyond fees, banks also make money through credit and lending through the interest generated in the process. WIth credit cards, banks earn money through interest on credit card balances, as well as related fees like interchange and merchant fees &mdash; i.e., each time a retailer processes a credit card payment, a percentage of the transaction amount is paid by the merchant to the bank as an interchange fee. With lending, the bank funds mortgages, auto loans, small business loans, and personal loans based on customer deposits and earns interest on the loan.
<h2>Advisory Services</h2>
Many banks offer advisory services for an additional cost in different areas, such as wealth management, investments, or retirement. Some determine this cost based on a percentage of assets under management (AUM) while others charge a flat fee or hourly rate for services.

How the Largest Banks Generate Income and Revenue

Personal financial management, or PFM, refers to the ways consumers monitor and manage personal finances.

Personal financial management, or PFM, refers to the ways that consumers monitor and manage their personal finances online or through a mobile app. 

What is PFM? Benefits & Use Cases of Personal Financial Management

The biggest source of stress for a majority of consumers is money. Earning, spending, saving, or even just thinking about money can cause anxiety. In fact, MX&rsquo;s <a href="https://www.mx.com/research/how-to-keep-consumers-from-breaking-up-with-banks/">latest survey of 1,000 U.S. adults</a> found 52% of respondents say thinking about money makes them anxious and 53% say it&rsquo;s a source of stress for them.&nbsp;
<blockquote>
52% of U.S. consumers say thinking about money makes them anxious and 53% say it&rsquo;s a source of stress.
</blockquote>
(Source: <a href="https://www.mx.com/research/how-to-keep-consumers-from-breaking-up-with-banks/" target="_blank" rel="noopener">MX Research Report &mdash; How to Keep Consumers from Breaking Up with Banks</a>)
This is why <a href="https://www.mx.com/products/personal-financial-management/">personal financial management (PFM) tools</a> are so important for both consumers and the financial institutions, fintech apps, and other <a href="https://www.mx.com/blog/top-factors-for-selecting-financial-provider/">financial providers they choose to use</a>. However, in today&rsquo;s fragmented financial ecosystem and mobile-first environment, many <a href="https://www.mx.com/blog/what-mint-shutdown-means-for-financial-institutions/">PFM tools are evolving, consolidating, or disappearing</a>. So what is personal financial management today and how does it work?&nbsp;&nbsp;
In this post, we will cover:
<ul>
<li><a href="#what-is-pfm">What is Personal Financial Management (PFM)?</a></li>
<li><a href="#pfm-vs-budgeting">PFM vs. Budgeting&nbsp;</a></li>
<li><a href="#why-pfm-matters">Why is PFM Important for Banks and Consumers?</a></li>
<li><a href="#mx-pfm-tools">How MX Supports PFM Tools</a></li>
</ul>
<h2 id="what-is-pfm">What is Personal Financial Management (PFM)?&nbsp;</h2>
Personal financial management, or PFM, refers to the ways that consumers monitor and manage their personal finances. With the rise of digital and mobile banking technologies, PFM now broadly refers to a type of digital banking solution that helps consumers manage their finances online or through a mobile app.&nbsp;
At its most basic, a PFM solution allows consumers to categorize transactions, view accounts from multiple financial providers in a single place (through <a href="https://www.mx.com/blog/what-is-account-aggregation/">account aggregation</a>), understand their spending, calculate their net worth, and create or manage budgets.&nbsp;
<h2 id="pfm-vs-budgeting">PFM vs. Budgeting&nbsp;</h2>
<a href="https://www.mx.com/products/personal-financial-management/">PFM tools and software</a> are more than a simple budgeting tool that helps consumers plan and keep track of money in and money out. They can offer a variety of insights, features, and tools that help consumers understand, manage, track, and make better decisions about their finances. This includes:
<h3>Account Aggregation</h3>
Consumers can create a single view of their finances by connecting external financial accounts.&nbsp;
<h3>Automated Spending Categorization</h3>
A spending tool can help consumers quickly see where they&rsquo;re spending their money without the need to manually sort or categorize transactions.&nbsp;
<h3>Spending Comparisons</h3>
PFM tools can offer month-to-month comparisons so that consumers can see how spending habits change over time, as well as provide general comparisons to show them how they are tracking compared to their peers.&nbsp;
<h3>Budget Creation</h3>
Consumers can set their own budgets or have one created automatically for them based on their spending trends, with recommendations on the best options based on how they currently spend their dollars.&nbsp;
<h3>Proactive Notifications, Reminders, and Alerts</h3>
Consumers can set up reminders and alerts based on different situations, such as upcoming bill payment deadlines, low balance alerts, large purchases, charges at particular stores or locations, etc. This helps them stay on top of their finances without the need to continually log in to the PFM tool or app.
<h3>Goal Setting</h3>
Goal setting tools can help consumers plan, prioritize, and visualize specific goals such as building up their emergency savings, planning for a large purchase, saving towards retirement, or pay off credit cards or loans.&nbsp;
<h3>Personalized Insights</h3>
Automated insights based on spending behaviors can help give consumers better information about their money habits so they can make smarter decisions and plan ways to meet their financial goals.
<h3>Debt Reduction Tools</h3>
These tools help consumers understand debt, prioritize which to pay first, estimate their earliest debt-free date, and track progress towards reaching their debt reduction goals.&nbsp;
<h3>Automatic Savings or Investments</h3>
Some PFM tools can also help people automate saving money by letting them create specific goals, &ldquo;round up&rdquo; purchases and put small amounts into savings automatically, etc.
<h2 id="why-pfm-matters">Why is PFM Important for Banks and Consumers?</h2>
<a href="https://www.mx.com/products/personal-financial-management/">Personal finance management (PFM) tools</a> have become increasingly important &mdash; and complex &mdash; as consumers juggle managing money across multiple financial accounts in a way that fits their lifestyle.&nbsp;
Gone are the days of a consumer with a single bank account. Now, the average consumer has at least 5 to 7 accounts with various financial providers, with many who have upwards of 20+ accounts including everything from checking and savings accounts to credit cards, brokerage, loans, retirement accounts, and more at different financial institutions and fintechs.&nbsp;
This makes embedded PFM tools the new &ldquo;must-have&rdquo; features for banks, credit unions, and other financial providers who want to drive engagement, loyalty, and retention of their customers. With so many different accounts available at the click of a button, consumers are quick to leave if they can&rsquo;t get the tools and insights they need with a particular financial provider.&nbsp;
<h3>How PFM Drives Engagement and Loyalty &mdash;&nbsp;and Increases Deposits</h3>
<a href="https://www.mx.com/research/how-to-keep-consumers-from-breaking-up-with-banks/">Consumers are looking for financial providers that can help them</a> better manage their money and make smarter financial decisions. Half of consumers agree they believe financial providers have a responsibility to teach them to be financially strong. And, 59% of respondents want their financial provider to proactively help them better manage their finances. The financial institutions and fintechs who can deliver on this expectation will be the ones to reap the benefits &mdash;&nbsp;stronger engagement, lasting loyalty, and higher deposits.&nbsp;
In fact, our research and analysis shows that consumers who engage regularly and often with mobile and digital banking services are more loyal, have less turnover, and <a href="https://www.mx.com/case-studies/cure-for-lost-deposits/">maintain higher deposit balances than less engaged consumers</a>. And, the more they engage, the greater the positive impact on deposits. Looking at the data for more than 10 million consumers across 12 months, consumers who regularly engaged with MX&rsquo;s PFM features within their <a href="https://www.mx.com/products/mobile-banking/">mobile banking experiences</a> had the highest deposit levels and grew those balances during the year, even as deposit balances fell for those who didn&rsquo;t engage as often.
More specifically, financial institutions and fintechs who leverage MX PFM and Insights see:
<ul>
<li>Higher consumer engagement: 50% increase in logins</li>
<li>Increased account aggregation: 20% of consumers aggregate external accounts</li>
<li>Stronger financial outcomes: 14% increase in savings balances</li>
<li>Higher account deposits: 15% higher deposit balances&nbsp;</li>
<li>Lower customer churn: 9% churn rate, vs. the industry average of 10-15%&nbsp;</li>
</ul>
<h3>How PFM Empowers Consumers&nbsp;</h3>
Let&rsquo;s face it &mdash; managing money is messy and the <a href="https://www.mx.com/whitepapers/financial-wellness-for-the-masses/">majority of consumers don&rsquo;t want to spend their time managing a budget</a>. Only a small portion of consumers actually like taking a hands-on approach to managing their finances. In fact, some people&rsquo;s preferred method of facing debt is to ignore it. Psychologists call this &ldquo;<a href="https://www.wsj.com/articles/young-people-avoid-facing-their-finances-more-than-ever-e853910e">financial avoidance</a>&rdquo; and has led to an increase in average credit card debt year-over-year among Millennials and Gen Z.&nbsp;
Embedded PFM tools make it easier for consumers to take control of their finances and build financial strength &mdash; without the spreadsheets or stress. The key word here is embedded. PFM tools need to be a part of the consumer&rsquo;s experience within a digital or <a href="https://www.mx.com/products/mobile-banking/">mobile banking app</a>, not a separate thing. Here&rsquo;s a few key recommendations on how to create the right PFM experience for consumers:&nbsp;
<ul>
<li>Bring clarity to transaction data. Indecipherable transaction data can lead to frustration, confusion, and even false reports of fraud, as well as an increase in customer support volume. Transaction data should be <a href="https://www.mx.com/products/data-enhancement/">cleansed and classified</a> into simple, understandable descriptions, making it easy for consumers to identify, organize, and act on their financial data.</li>
<li>Make it connected. With so many different accounts with different financial providers, having the option to easily see all of their finances in one place can be a game changer.&nbsp;</li>
<li>Streamline the process. Institutions with the highest adoption rates place the most sought-after information and common actions in multiple prominent locations within the digital user experience. By placing insights and opportunities in the flow-of-life tasks or habits that consumers have already adopted, financial providers can drive higher engagement.</li>
<li>Build new habits. By delivering insights in a predictable and repeatable manner &mdash; and if the content is obviously and reliably valuable and actionable &mdash; <a href="https://www.mx.com/products/personal-financial-management/">PFM solutions</a> can create lasting engagement and healthier financial habits.</li>
</ul>
<h2 id="mx-pfm-tools">How MX Supports PFM Tools</h2>
With <a href="https://www.mx.com/products/personal-financial-management/" target="_self">MX Personal Financial Management</a> and <a href="https://www.mx.com/products/financial-insights/">Financial Insights</a>, financial institutions and fintechs can provide financial management and planning tools that are embedded into their digital and mobile experiences. MX enables you to:&nbsp;
<ul>
<li>Deliver personalized insights and recommendations to help consumers better manage spending, create budgets, increase savings, and pay down debt.</li>
<li>Protect, guide, and inform consumers with AI-driven, predictive insights that make it easy for them to take action to reach their financial goals</li>
<li>Enable consumers to <a href="https://www.mx.com/products/account-aggregation/">connect external accounts</a> in a few simple steps and gain a more complete picture of their finances</li>
<li>Help consumers easily organize, track, and interact with their finances with automated spending categories and <a href="https://www.mx.com/products/data-enhancement/">enhanced transaction data</a>.</li>
</ul>

What is Personal Financial Management (PFM)? What it Means and Why It Matters

The CFPB's proposed rulemaking under Dodd-Frank Act Section 1033 generated 11K+ comments. Here's our summary of the top themes.

Learn more about MX's comments to the CFPB on consumer financial data rights

The CFPB's proposed rulemaking for consumer financial data rights under Dodd-Frank Act Section 1033 generated 11K+ comments. Here's our summary of the top 10 common themes.

Personal Financial Data Rights Rulemaking: 11K+ Comments, 10 Themes 

The Consumer Financial Protection Bureau&rsquo;s (CFPB) notice of proposed rulemaking (NPRM) for personal financial data rights under Dodd-Frank Act Section 1033 generated more than 11,000 comments from banks, credit unions, fintechs, industry groups, and other third parties.&nbsp;
As part of the comment period, MX also shared its perspective on the proposed rule. We applaud the CFPB for advancing the cause of financial empowerment by proposing a rule that would make enforceable the Congressional directive that consumers have access to data regarding their financial products and services, and to do so in a way that mitigates financial risks and reduces potential consumer harm.&nbsp;
<blockquote>
Learn more about MX&rsquo;s recommendations to enhance the proposed rule and what it means for our clients, partners, and the consumers we collectively serve. <a href="mx.com/whitepapers/mx-perspective-on-consumer-data-rights-rulemaking" target="_blank" rel="noopener">Read the whitepaper</a>.&nbsp;
</blockquote>
We believe that the success of the financial industry, future innovation, and the financial health of Americans can all be greatly enhanced by increased clarity of data rights and the implementation of this rulemaking. But there is still much work to be done. We can expect more engagement and questions over the next 6 or more months as the CFPB evaluates comments and makes revisions ahead of a final rulemaking likely in late Fall 2024.&nbsp;
Here&rsquo;s our summary of 10 key themes based on these industry responses:&nbsp;
<h2>Scope of Data. Is it Enough?&nbsp;</h2>
The proposed rule contemplates applying to a small subset of covered entities, including those that provide asset accounts subject to Regulation E, credit cards subject to Regulation Z, and payment facilitators. This leaves a majority of the financial ecosystem and significant amounts of consumer financial data outside the scope of the rule, including loans, investments, retirement accounts, and more.
<h2>Restrictions on Secondary Use Cases. Will This Hamstring Consumer Benefits?</h2>
Proposed limitations on secondary use cases would prevent companies from using consumer-permissioned data in a manner that would benefit the consumer and support increased competition and innovation.&nbsp;
<h2>Risks and Liability. Who&rsquo;s on the Hook?&nbsp;</h2>
Ambiguity in liability definitions could create varying interpretations that lead to more confusion. Many comments call for more explicit statements related to third party risk management and liability for mishandling of data or data breaches.&nbsp;
<h2>Fees. Should Reasonable Fees Be Allowed?&nbsp;</h2>
The current proposed ruling does not allow for financial institutions to charge for data access, at this point in time. Comments from the industry are split amongst FIs who want to charge and industry groups who believe costs will negatively impact consumers.&nbsp;
<h2>Technical and Interface Standards. Does a Named SSO Need to Come Before the Final Rule?&nbsp;</h2>
Many responses agree with the premise of an industry standards-setting body (SSO) but worry about the practicalities and timing. For instance, several ask the CFPB to designate an SSO prior to the final rulemaking to ensure little disruption to the data sharing environment and avoid delays in the industry&rsquo;s ability to implement this rule.&nbsp;
<h2>Transitioning from Screen Scraping. How Do We Do This Most Effectively?&nbsp;&nbsp;</h2>
The proposed rule doesn&rsquo;t provide guidance on how to manage the transition from screen scraping to an API without disrupting operations or consumer access to data. Comments ask for clarity to ensure data providers don&rsquo;t simply shut off access to comply with the rule but find a way to keep data flowing during this transition.&nbsp;
<h2>Consent and Authentication. How Do We Keep it Safe and Easy for Consumers?&nbsp;</h2>
While there is universal support for strong authorization and authentication protocols to keep consumer data safe, comments encourage the CFPB to look for ways to streamline consumer consent to avoid creating added friction and placing additional undue burden on the individual and to clarify authentication processes to minimize risks.&nbsp;
<h2>Tokenized Account Numbers. Too Soon?&nbsp;</h2>
TANs can provide some security and privacy advantages. But, they lack standardization today, which creates increased risks for consumers, merchants, and financial services providers.&nbsp;
<h2>FCRA and Data Broker Rules. How Do We Manage the Overlap?&nbsp;</h2>
Many comments ask the CFPB to clarify how Section 1033 rules overlap with other rules like the Gramm-Leach-Bliley Act and the Fair Credit Reporting Act. Several regulations overlap significantly, and the combined impact on financial providers is not yet fully understood.
<h2>Implementation Timeline. Is There Enough Time to Become Compliant?</h2>
Many are raising concerns about the proposed compliance timelines citing the need for more time to meet requirements and operationalize an API &mdash; without interrupting consumer access in the meantime.&nbsp;

CFPB Rulemaking on Personal Financial Data Rights: 11K+ Industry Comments, 10 Common Themes 

Consumer financial priorities have shifted in 2024. MX's new survey shows how consumers feel about finances and their top goals.

Want to learn more about what consumers want and expect from financial providers?

MX’s latest survey of over 1,000 U.S. adults reveals how consumers feel financially going into 2024 and what their goals are for the year.

How Consumers Feel About Finances in 2024 | MX Blog

Between high interest rates, bank failures, and a possible recession, 2023 took a toll on consumers&rsquo; financial lives. Thirty-eight percent of consumers said their financial situation is worse than it was 12 months ago in MX&rsquo;s latest survey of 1,000+ U.S. adults. Despite these challenges and concerns, consumers have remained resilient.
Last year, <a href="https://www.mx.com/research/what-influences-where-consumers-choose-to-bank/">our research showed</a> consumers were focused on how much they could put toward debt and savings.&nbsp;
<img src="https://cms.mx.com/assets/96530043-47bc-4dd1-b1b2-4ada84454e98?width=1828&amp;height=404" alt="Image (14)" />
Now, consumers are focused on how much they are spending and how to spend less. This is reflected in their financial goals for 2024:
<img src="https://cms.mx.com/assets/b476b091-f439-4fe2-9168-f94e41b2ee89?width=1813&amp;height=1517" alt="Asset 9@4x 100" />
Many consumers are also adjusting their financial behavior in the face of a potential recession:
<ul>
<li style="font-weight: 400;" aria-level="1">43% carry a balance month-to-month on their credit cards</li>
<li style="font-weight: 400;" aria-level="1">47% are depositing less money into their savings or investment</li>
<li style="font-weight: 400;" aria-level="1">67% have cut items from their budget to save money</li>
<li style="font-weight: 400;" aria-level="1">26% have moved money away from investment accounts</li>
<li style="font-weight: 400;" aria-level="1">53% are not currently contributing to a 401(k) account</li>
</ul>
There is clear opportunity to help consumers better manage their money and build financial strength this year. Financial institutions and fintechs should focus on delivering personalized money experiences that connect customers to their data in ways that are actionable.&nbsp;

Consumers are concerned about finances going into 2024. MX's latest survey shows uncovers how consumers are feeling financially and what their goals are for the year.

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