Yesterday, the CFPB published the final Section 1033 rule. Here’s our summary of a few key aspects of the final rule.

 The CFPB published the final Section 1033 rule that gives consumers greater control and rights over personal financial data. Here’s MX's summary of a few key aspects.

Section 1033 Final Rule: Quick Takes on Key Changes | MX Blog

Yesterday, the Consumer Financial Protection Bureau <a href="https://www.consumerfinance.gov/about-us/newsroom/cfpb-finalizes-personal-financial-data-rights-rule-to-boost-competition-protect-privacy-and-give-families-more-choice-in-financial-services/">published the final Section 1033 rule</a> that will give consumers greater control and rights over their personal financial data. While we are still reviewing closely, the 594-page final rule seems to be largely the same as the proposed rule with a few key changes and clarifications.&nbsp;
At MX, our mission is to empower the world to be financially strong. And, at the core of delivering on that mission is the ability for consumers and the financial providers who serve them to connect, understand, and act on their permissioned financial data. This final rule is a huge milestone in making sure consumers have the right to access and control that financial information. Here&rsquo;s our summary of a few key aspects of the final rule as we continue our review:
<h2>Extending Compliance Deadlines</h2>
Compliance deadlines have been extended to allow for more time for data providers and third parties to meet these new expectations. And, the smallest institutions (banks and credit unions with less than $850 million in assets), will not be required to provide data under the rule.
New compliance deadlines for institutions with more than $850M in assets are:&nbsp;
<img src="https://cms.mx.com/assets/3ede7f0b-a0fe-49ae-9773-24a7cbb39482?width=1200&amp;height=738" alt="1033 Compliance Timeline" />
<h2>Continuing to Start Small on Scope of Data</h2>
The scope of data remains largely the same from the draft rule, and we should continue to expect additional rules over time to address other products and services.&nbsp;
Covered data includes Reg E accounts, Reg Z credit cards, digital wallets, and payment facilitation products. The only difference here from the draft rule is excluding first-party payments as part of those payment facilitation products. <a href="https://www.consumerfinance.gov/rules-policy/final-rules/required-rulemaking-on-personal-financial-data-rights/">According to the final rule</a>, &ldquo;first-party payments are distinct from payment facilitation products. Accordingly, the CFPB is &hellip; explicitly excluding products or services that merely facilitate first-party payments. For purposes of this definition, a first-party payment is a transfer initiated by the payee or an agent on behalf of the underlying payee. First-party payments include payments initiated by a loan servicer.&rdquo;
Again, this is just the first wave of covered data. Chopra said in <a href="https://www.consumerfinance.gov/about-us/newsroom/prepared-remarks-of-cfpb-director-rohit-chopra-at-the-federal-reserve-bank-of-philadelphia-on-the-personal-financial-data-rights-rule/">remarks at the Federal Reserve Bank of Philadelphia</a> yesterday that &ldquo;the CFPB will be developing a roadmap for the next set of rules to advance open banking. &hellip; We are considering a number of other use cases, such as how to reduce costs and complexity in the mortgage market. During the rulemaking process, there were a number of important issues raised, such as coverage of accounts used for government benefits and the ability for nonprofit researchers to use consumer-permissioned data.&rdquo;
<h2>Using Data for Consumer Benefit &mdash; A Word on Secondary Use Cases&nbsp;</h2>
The final rule provides expanded guidance and clarity on the reasonable use of consumer-permissioned data by authorized third parties. The language now calls out &ldquo;purposes&rdquo; rather than &ldquo;activities&rdquo; when it comes to secondary use cases. We think this is important as it&rsquo;s the intent rather than a list of actions that matters. We strongly believe consumer financial data should only be used to ultimately benefit the consumer &mdash; and not used in ways that are purely value extraction or advantages to an organization to the detriment of the consumer.
<a href="https://www.consumerfinance.gov/about-us/newsroom/prepared-remarks-of-cfpb-director-rohit-chopra-at-the-federal-reserve-bank-of-philadelphia-on-the-personal-financial-data-rights-rule/">At the Federal Reserve Bank of Philadelphia</a>, Chopra said, &ldquo;it&rsquo;s pretty simple. A company that ingests consumer&rsquo;s data can use the data to provide the product or service the consumer asked for, but not for unrelated purposes the consumer doesn&rsquo;t want.&rdquo;&nbsp;
The CFPB states that consumer-permissioned data can be used to improve the product or service that the consumer requested without separate authorizations. For instance, this could include data enhancement to translate raw transaction data into understandable and actionable information for consumers. But, the final rule doesn&rsquo;t allow for things like targeted advertising, cross-selling of other products or services, or the sale of covered data by a third party without separate, standalone authorization.
Chopra further stated that &ldquo;the rule is designed to ensure that open banking does not become a new data pipeline that fuels surveillance pricing or other manipulative mischief.&rdquo;&nbsp; If a consumer chooses to share their financial data in order to gain a better experience, we have a responsibility to use that data to drive the best results possible for them and not cause harm.&nbsp;
<h2>What&rsquo;s Next</h2>
With the first compliance deadline now set, it&rsquo;s time to dive into the technical details and performance requirements in depth to ensure APIs, processes, and interfaces meet the final rule.&nbsp;
In addition, the CFPB published the <a href="https://www.consumerfinance.gov/about-us/blog/cfpb-launches-public-comment-process-for-open-banking-standard-setter-recognition/">first application seeking recognition as an open banking standard-setter</a> from the Financial Data Exchange (FDX) in September. While the final rule mostly adjusts any standards language to call out a &ldquo;consensus standard&rdquo; to meet requirements, a recognized standard-setting organization will go a long way in helping create that consensus.&nbsp;
We&rsquo;re excited about this next step in the U.S. towards a more open, competitive, and innovative ecosystem for the benefit of consumers. We look forward to continuing to lead with privacy-first principles and ensuring our clients can meet these new compliance obligations and leverage consumer-permissioned data effectively and ethically.

Section 1033 Final Rule: Quick Takes on Key Changes — Deadlines, Scope, and Secondary Use

MX is excited to share that Founder Ryan Caldwell has returned to the company as Chief Executive Officer.

Caldwell founded MX in 2010 with a mission he and Co-Founder Brandon Dewitt established that continues today — empowering the world to be financially strong.

MX Announces Return of CEO and Founder Ryan Caldwell

Today, MX is excited to share that Founder Ryan Caldwell has returned to the company as Chief Executive Officer, effective immediately. Ryan has been serving as the Executive Chair of the MX Board of Directors since stepping down as CEO in 2021.
In late 2021, Caldwell made the difficult decision to step aside as CEO to focus on his daughter&rsquo;s health. She is doing much better and getting stronger every day, making it the right time for Ryan to return as CEO. We are excited to welcome Ryan back to MX in a full-time capacity.&nbsp;
&ldquo;I am excited to return to MX at such a pivotal moment for both the company and the industry, as financial institutions and fintechs look to leverage consumer-permissioned financial data to grow deposits, increase innovation, and deliver new products and services that strengthen outcomes,&rdquo; said Caldwell. &ldquo;We have an incredible team and opportunity ahead of us to innovate faster and enable real, tangible benefits for consumers and the financial providers that serve them.&rdquo;&nbsp;
Caldwell founded MX in 2010 with a mission he and Co-Founder Brandon Dewitt established that continues today &mdash;&nbsp;empowering the world to be financially strong. MX does this by delivering the industry&rsquo;s most robust and reliable connectivity, data enhancement, and experience solutions to financial services providers.
Additionally, we are excited to share that Chief Technology Officer Wes Hummel will take on an expanded role leading both the MX product and technology teams.&nbsp;

MX Founder Ryan Caldwell Returns as Chief Executive Officer

Here’s 5 key insights from our survey of 1,000+ U.S. consumers that financial providers should consider to increase engagement.

Here’s 5 key insights from our latest survey of 1,000+ U.S. consumers that financial providers should consider to increase consumer engagement. 

Increase Consumer Engagement With Intuitive Money Management Tools

Our latest research shows 25% of U.S. consumers feel completely financially secure today. And, more than half (56%) of respondents say they will be financially secure someday.&nbsp;
But, while they may feel optimistic for the future, they are still worried about the everyday costs of groceries, housing, and more continue to rise due to inflation. And, they may be stuck in old ways when it comes to solving these feelings of financial insecurity.&nbsp;
<blockquote>
&ldquo;In today&rsquo;s increasingly challenging economic environment, it&rsquo;s interesting to see a majority of consumers still relying on manual processes &mdash; adding more burden and potentially stress to managing their finances,&rdquo; shares Jane Barratt, Chief Advocacy Officer and Head of Global Public Policy, MX.&nbsp;
</blockquote>
Financial institutions and fintechs have an opportunity to play a bigger role in helping consumers achieve financial security by relieving the mental burden with proactive, personalized notifications and intuitive money management tools that can do the heavy lifting for them.&nbsp;
Here&rsquo;s 5 key insights from our latest survey of 1,000+ U.S. consumers that financial providers should consider in meeting this opportunity head on:
<h2>1. Consumers still turn to manual bill pay methods over automation. </h2>
When asked what most closely aligns with how they pay bills on a monthly basis, 40% of all respondents say they prefer to manually view and pay each bill every month to keep track of their finances. An additional 24% say they manually pay each bill to make sure they have the funds available.&nbsp;
<h2>2. Incentives could drive consumers to change their payment habits. </h2>
While the majority of consumers (51%) prefer to keep their payment methods the same for convenience, more than one-third (36%) would consider switching if they received an incentive.
<h2>3. The keys to direct deposit switching are rates and rewards. </h2>
When asked if they have ever switched their direct deposit to a different financial institution, the majority (65%) say no. But, nearly half say the top factors that are most likely to make them switch are the ability to earn higher interest rates (22%) or receive cash back incentive or offer to earn rewards for switching (22%).&nbsp;
<h2>4. Personalization is critical. </h2>
Consumers are looking for a financial provider that knows them and puts that knowledge into practice through personalized insights and tools. Forty-nine percent of consumers expect their financial provider to know them. And, 47% of consumers expect greater levels of personalization in banking than ever before. 
<h2>5. Actionable intelligence drives higher engagement and even more data. </h2>
More than half expect their financial provider to leverage the data they have about them to personalize their experience (53%) and provide them with actionable and clear insights about their finances (56%). What&rsquo;s more &mdash;&nbsp;consumers will share even more data if it results in a better experiences.&nbsp;
To read the full report, please visit: <a href="https://www.mx.com/research/driving-engagement-for-consumers-research/">https://www.mx.com/research/driving-engagement-for-consumers-research/</a>

How to Encourage Consumers to Use New Money Management Approaches 

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

Does regulation hinder or help innovation? This is an age-old debate that continues to remain top of mind for financial leaders.

Regulations across the financial services industry are key to protecting the consumers, while also creating opportunities for innovation.

Modern Regulation and its Impact on Innovation

Does regulation hinder or help innovation? This is an age-old debate that continues to remain top of mind for financial leaders. Jane Barratt, Chief Advocacy Officer and Head of Public Policy at MX recently sat down with Adrienne A. Harris, Superintendent, New York State Department of Financial Services, at <a href="https://www.mx.com/summit/2024/regulation-and-innovation/">Money Experience Summit 2024</a> to get her take on this and more.&nbsp;
Here are some of the key takeaways from the conversation.
You Need Both Regulations and Innovation
Jane kicked off the conversation with a question about whether regulation and innovation are at odds with each other, or if they can work together. Adrienne responded with a notion of interdependency saying, &ldquo;You need to have them both. The narrative is often that you have too much regulation and it&rsquo;s going to stifle innovation. This is the perfect place to prove you can protect consumers in markets and be good for businesses all at the same time.&rdquo;
Regulation will not diminish innovation. It pushes businesses of all sizes to follow the same standards, which can help level the playing field among competitors. These requirements give businesses no choice but to begin to offer competitive products and services that will benefit the consumers.
New Trends Bring New Risks&nbsp;
The fintech landscape is ever-evolving and characterized by new tech trends that create both new opportunities and risks. As technologies gain popularity, this &mdash; which&nbsp; calls for regulation and standardized procedures that have not been necessary in the past.&nbsp;
Adrienne explained that while innovation is great, especially when it comes to hot trends such as crypto and AI, regulation is important for progress. Any time that the assets of consumers come into play, there needs to be heavy regulations in place to protect them.
Creating a Strong Partnership Between Government and Businesses&nbsp;
New regulations will continue to roll out faster than ever as technology continues to evolve, requiring quick adoption from financial service providers. Adrienne noted that she is a big advocate for cross-sectionalism.&nbsp;
Our future and the good of the consumers need the government and private sector to come together to make decisions as one. With countless issues around data, privacy, and more that affect consumers, private banks and the government need to present a unified front to create and follow through on regulations that benefit the consumer.

Balancing Regulation and Innovation

MX named Maisie Bilotti as Senior Director of Advocacy; she will collaborate with leaders across the financial services ecosystem.

MX continues to bolster its advocacy efforts with the addition of Maisie Bilotti.

Maisie Bilotti Joins MX’s Advocacy Team

At MX, we have been a strong advocate for consumer data rights and privacy-first principles for more than a decade. Our advocacy program focuses on how we and the financial ecosystem can use data effectively and ethically to deliver on our mission &mdash; to empower the world to be financially strong.&nbsp;
Today, MX continues to expand its advocacy efforts and named Maisie Bilotti as Senior Director of Advocacy. She brings more than ten years of experience in government affairs and public policy. Bilotti will collaborate with leaders across the financial services ecosystem, with a focus on regulators and policymakers, reporting to MX Chief Advocacy Officer and Head of Global Public Policy, Jane Barratt.
&ldquo;MX has long advocated for harnessing the power of financial data to improve both consumer and business outcomes. Maisie is the perfect addition to expand our advocacy efforts and I&rsquo;m thrilled to have her on board,&rdquo; shared Jane Barratt.
Most recently, Bilotti was a Regulatory Response Manager at Google where she was responsible for leading a cross functional group to develop and execute Google&rsquo;s worldwide regulatory response to legislation.
&ldquo;I&rsquo;m eager to collaborate with financial providers, regulatory bodies, and industry groups across the ecosystem to promote better financial outcomes for consumers and financial institutions,&rdquo; said Maisie Bilotti.

MX Bolsters Advocacy Efforts; Welcomes Maisie Bilotti

1033 is here and already causing waves. Check out key insights from industry experts on where we are and where we are going. 

The final CFPB Section 1033 rule has arrived. Industry experts discuss when to act and next steps. 

1033 Is Here: Advice and Next Steps from Policy and Product Experts

It has been a few weeks since the Consumer Financial Protection Bureau (CFPB) dropped its <a href="https://www.mx.com/blog/final-1033-rule-quick-takes/">final Section 1033 rule</a> under the Dodd-Frank Act. Like a stone in a pond, we are starting to see the shape of the ripples it is making. Financial institutions, third parties, and intermediaries across the financial industry are just beginning to unpack what the final 594-page rule means for them.&nbsp;
At MX, we <a href="https://www.mx.com/webinars/1033-is-here/">hosted a live conversation</a> with Jane Barratt, Chief Advocacy Officer and Head of Public Policy at MX, and Ashwin Vasan, Partner at FS Vector and Former CFPB Associate Director, as well as MX product leaders, to discuss its expected and immediate impacts on the financial industry.
Here are some key takeaways from the conversation.
<h2>Extended Deadlines Give Time to Do It Right</h2>
One of the biggest changes from the proposed rule are the compliance deadlines. The largest financial institutions (those with more than $250B in assets) now have until April 2026 to comply with the rule. But, this doesn&rsquo;t mean financial institutions should now take their time in implementing secure and compliant APIs and third-party management systems. According to Ashwin, the extension is not extra time to start the process of implementation, because &ldquo;if you work back from the deadlines, it does not seem like it would slow it down tremendously.&rdquo;&nbsp;
Companies will not only struggle to reach compliance in time if they delay, but will also miss out on a competitive advantage by dragging their feet. The statutory provision in the Dodd-Frank Act that gives consumers the right to access their data has been influencing Open Banking in the U.S. for years, says Ashwin. He stated that 1033 creates &ldquo;clearer rules of the road based on what the market had done to that point.&rdquo;&nbsp;
Bottom line: If you see 1033 as the beginning of Open Banking in the U.S., you are behind the curve. Regardless of where you are, Ashwin says if you are aimed at &ldquo;de-risking consumer data and de-risking the risk of screen scraping, it makes sense to move (to open banking) now anyway.&rdquo;&nbsp;
<h2>Acting Fast Drives a Competitive Advantage</h2>
<blockquote>
&ldquo;The industry has already moved in this direction. If you wait for the regulatory stick, you have missed the competitive carrot.&rdquo; &mdash;Jane Barratt
</blockquote>
Jane noted that despite the U.S. having &ldquo;by far the most complicated financial system,&rdquo; we have made significant progress towards an open banking system largely through bilateral agreements. The precedent has been set that sharing financial data is beneficial and creates an ecosystem where consumers are best served by tailored products based on their permissioned financial data while financial institutions can drive higher engagement and loyalty. Yes, there are compliance concerns but, more importantly, there are benefits to adopting open banking principles.&nbsp;
<h2>Getting Started: 1, 2, 3</h2>
As the final question in our discussion, the panelists were asked to share their recommended next steps for 1033. Jane Barratt gave her answer in three parts:&nbsp;
<ol>
<li style="font-weight: 400;" aria-level="1">Get Smart and Build a Strategy:&nbsp; Whether that is investing in getting up to speed quickly to get a jump on the competitive advantage or waiting for regulation, financial providers first&nbsp; need to know their goals and plan to achieve them.&nbsp;</li>
<li style="font-weight: 400;" aria-level="1">Get Involved: The issues and questions being raised around the final 1033 rule are being solved in real time by the industry. The best way to ensure good outcomes for organizations, consumers, and the industry is to get involved. </li>
<li style="font-weight: 400;" aria-level="1">Put Consumers at the Center: Technology will always move forward and it is easy to get distracted by complications. However, ensuring the best outcomes for consumers should always be at the center of what we do.&nbsp;</li>
</ol>
Open Banking and 1033 will continue to evolve, and MX will continue to generate guidance for the road ahead. <a href="https://www.mx.com/webinars/1033-is-here/">Check out the full replay</a> to hear more from our panel of experts, including how MX&rsquo;s <a href="https://www.mx.com/products/data-access/">Data Access </a>can provide secure, seamless data sharing solutions for 1033 and beyond.

1033 is Here: Where Do We Go Next? 

Check out the key insights and ideas from some of the biggest names in the industry that took the stage at Money20/20 USA

Money20/20 speakers look to the future of AI, global markets, and consumer-permissioned data sharing. 

Money20/20 Insights on the Future of Fintech and Financial Services

Built to challenge and change a stagnant banking system, fintech is an industry that has always been on the cusp of the next big thing. At this year&rsquo;s<a href="https://us.money2020.com/"> Money20/20 USA, </a>discussions made it clear that&nbsp; the fintech industry may be facing one of its biggest shifts to date. Here&rsquo;s a rundown of some of the changes on the horizon:&nbsp;
<h2>Speeding Up the Stock Exchange</h2>
Lynn Martin, president of the New York Stock Exchange (NYSE), shared that the NYSE has expanded its trading hours to 22 hours a day, 5 days a week. This change, according to Martin, was made in an effort to accommodate an increasingly global and digital market.&nbsp;
This move will allow the market to manage risk globally and be more accessible. And, unsurprisingly, it&rsquo;s all about the data.&nbsp; When asked what she sees in the future of financial markets, Martin expressed it would all hinge on <a href="https://www.mx.com/blog/how-financial-data-intelligence-improves-outcomes/">getting and using data</a>. Her prediction was that data-powered technology would bring clarity and transparency to &ldquo;opaque markets&rdquo;.&nbsp;
She said that, as of now, the financial markets rely on so many important processes that are slow and inefficient, but she sees that changing. And, if processes improve, it could have huge impacts across the financial industry.&nbsp;
<h2>Embracing Artificial Intelligence</h2>
A major theme throughout the week, and highlighted by Martin as a technology primed to change the industry, was AI and machine learning. Martin said, &ldquo;AI is driven by data&rdquo; and &ldquo;AI adds transparency to data.&rdquo; However,&nbsp; according to Sarah Friar, CFO of OpenAI, the time is now, not in the future.
<blockquote>
&ldquo;AI is happening right now. It is not experimental. It matters to you right now,&rdquo; said Friar.&nbsp;
</blockquote>
Friar spoke of various use cases where AI is already impacting today's world &mdash; and expressed that the adoption of AI will likely grow exponentially. But, that growth is not without challenges. Friar noted that the demands of growing learning models from one level to the next has a corresponding exponential demand on resources and cost. Frair expressed that AI is beholden to the same laws of scale as any new and growing technology. Each tier is harder and more expensive to reach than the last, but she believes that the functionality of AI will grow correspondingly.&nbsp;
<h2>Moving Forward on Open Banking</h2>
The <a href="https://www.consumerfinance.gov/">Consumer Financial Protection Bureau&rsquo;s </a>Director Rohit Chopra took the main stage to discuss the <a href="https://www.mx.com/blog/final-1033-rule-quick-takes/">final Section 1033</a> rule on consumer financial data rights .
The final 1033 rule is the product of more than a decade of working towards consumers gaining control of their data. Chopra shared that the progress and competition is designed to empower consumers with choice and options when it comes to finding financial providers.
He went so far as to say &ldquo;every financial institution should feel like their customer can fire them.&rdquo; He explained that this should be the resting state for financial services &mdash; to constantly be utilizing data to improve their offerings for customers.&nbsp;
<a href="https://www.mx.com/blog/what-is-open-banking/">Open Banking</a> is here. And, Director Chopra and MX are in agreement that those who adopt early will drive better outcomes.
<h2>Looking Head</h2>
Even with all of the bright spots on the horizon, many speakers expressed their commitment to the work yet to be done. Friar said, &ldquo;The future is here, but it is unevenly distributed.&rdquo;&nbsp;
As we advance in the worlds of technology and financial services, we need to do more to make those advancements available and beneficial to everyone. Fintech needs to bring the best of both worlds to positively change everyone's lives.

Changes Made for Changing Times: Key Insights from Money20/20 USA 2024

Artificial intelligence (AI) continues to be one of the hottest topics in the financial industry. 


Leaders across the financial industry weigh in on  important considerations and use cases for AI in banks.

Driving Value From AI for Financial Institutions

Artificial intelligence (AI) continues to be one of the hottest topics in the financial industry. In fact, more than 40 different sessions touched on this topic at this year&rsquo;s Money20/20 USA &mdash; from building trust in AI to AI-enabled everything.&nbsp;
While everyone recognizes the <a href="https://www.mx.com/guides/risks-rewards-ai/">opportunities and obstacles</a>, many financial services providers are still just dabbling in AI. And, consumers remain skeptical about leveraging AI to help them manage their money.&nbsp; A <a href="https://www.mx.com/research/the-missing-link/">recent MX survey</a> found that 43% of consumers would not trust AI to help them manage and track their finances.&nbsp;
So, how can we balance the feelings of fear with the opportunities? How can those within the financial services industry introduce AI into their business processes in an impactful and meaningful way?
Here&rsquo;s what leaders from MX, the state of Utah, Spring Labs, Moov.io, and Aliya had to say about AI, the keys for successful implementation, and top use cases in the financial services industry at last month&rsquo;s Money Experience Summit. <a href="https://www.mx.com/summit/2024/ai-in-banking/">Watch the full panel discussion</a> to learn more.
<h2>AI in Banking Takes Hold</h2>
AI is not new. <a href="https://www.mx.com/whitepapers/55-years-technology-banking/">IBM&rsquo;s Deep Blue beat world chess champion</a> and grandmaster Gary Kasparov back in 1997. And, the use cases for business have grown ever since. &ldquo;[Businesses] have been using AI quietly for years,&rdquo; says Sam Maule, Head of Business Development at Moov.io. This slow transition has allowed businesses to build and develop powerful AI solutions that paved the way for the AI that businesses are beginning to implement today.
Now, AI in banking is taking off at an accelerated pace. It is helping them to decrease costs and attract more customers as they simplify the customer experience with new self-serve tools. The banks that catch on will catch up and be able to challenge the competition.
<h2>How to Drive a Successful AI Implementation</h2>
With the proper leadership buy-in, businesses can begin to reap the rewards of newfound efficiency and start to do more with less. When it comes to determining what AI product will be right for a business, John Sun, CEO of Spring Labs, said &ldquo;at the end of the day, a good AI product should not be defined by its AI-ness. It should be defined by its value to your organization.&rdquo;&nbsp;
AI solutions are not powerful simply because they are AI. The solutions that will have the most impact will simplify processes, improve the customer experience, and be easily adoptable. AI products should be measured by their ROI and present new levels of efficiency to delight customers.
<h2>AI Use Cases in the Financial Industry</h2>
Practical applications make AI more than simply an attractive concept. The panelists discussed some of the most important AI use cases they have seen within the financial services industry &mdash; and recommendations for where businesses can start:&nbsp;
<h3>Delivering Customer Insights</h3>
AI offers a transformational functionality in predicting customer behavior more accurately and collecting customer insights. It helps financial institutions create a cycle of building products informed by customer insights, followed by generating more customer data to improve those products.
<h3>Automating Compliance Reporting</h3>
In light of the Consumer Financial Protection Bureau&rsquo;s recent <a href="https://www.mx.com/blog/final-1033-rule-quick-takes/">Section 1033 final rule</a>, compliance is even more timely and important. Generative AI can be a powerful tool in helping to automate highly repetitive tasks, such as reporting requirements to meet compliance regulations.
<h3>Enhancing Transactional Data</h3>
While generative AI models have low accuracy for complex transactions, there are highly-involved model types that can accurately handle transactional data to drive personalized experiences and better support for the customer, while increasing the impact that financial service providers deliver.

Driving Value from AI in Banking

Ryan Caldwell and Crystal Anderson, Kick off MXS 2024 in Park City. Check out the key takeaways from their conversation.    

Ryan Caldwell’s keynote chat at MXS highlights partnerships, data, and what makes MX different.

CEO Ryan Caldwell is Focused on a Data-Driven Future

The future has always been on MX Founder and CEO Ryan Caldwell&rsquo;s mind. After a two-year absence, Ryan has returned as CEO to help bring the future he&rsquo;s always seen into reality &mdash; one where data is the key to empowering the world to be financially strong.
This was a primary focus when he took the stage at this year&rsquo;s <a href="http://mx.com/summit/2024">Money Experience Summit </a>for a<a href="https://www.mx.com/summit/2024/welcome-to-MXS-2024/?utm_lp=featured+video"> conversation with Crystal Anderson</a>, Vice President of Operations and Chief of Staff at MX. Here are some of the takeaways:
<h2>Leveraging the Data</h2>
Data &ldquo;is one of the most valuable things in the world and it is completely untapped,&rdquo; says Ryan. Data is at the heart of what we do at MX and it is what drives our mission forward. As we look ahead, <a href="https://www.mx.com/blog/final-1033-rule-quick-takes/">shifts in the regulatory landscape</a> are changing how financial providers leverage this data. For more than a decade, MX has been a leader in Open Finance and consumer-permissioned data sharing. Today, MX&rsquo;s expertise in leveraging data has never had more potential to affect positive change in the financial industry.
<h2>Being a True Partner</h2>
At MX, we don&rsquo;t just want to be another vendor. Our focus is on becoming a true partner to the banks, credit unions, and fintechs we serve. Ryan explained that a true partner is someone who does three things:&nbsp;
<ul>
<li style="font-weight: 400;" aria-level="1">Really listens to what you need</li>
<li style="font-weight: 400;" aria-level="1">Tells you no when it&rsquo;s necessary</li>
<li style="font-weight: 400;" aria-level="1">Always looks to the future&nbsp;</li>
</ul>
<h2>Driving Positive Outcomes</h2>
Data on its own is just data. MX aims to see the bigger picture. It is not enough to simply have the data. It requires the right tools to <a href="https://www.mx.com/products/data-enhancement/">enhance</a> it and make it actionable for consumers and financial providers.&nbsp;&nbsp;
Crystal shared that the spirit of this MXS was to ask, &ldquo;how can we leverage all this data . . . to drive business and consumer outcomes?&rdquo;
And, we are just getting started. Ryan said, &ldquo;We are just at the beginning of actually leveraging the data to take action.&rdquo; But, as long as MX is focused on the future, we will be ready to leverage the data, cultivate true partnerships, and drive positive outcomes.&nbsp;&nbsp;
<a href="https://www.mx.com/summit/2024/welcome-to-MXS-2024/?utm_lp=featured+video">Check out the full conversation here.</a>

The Future Is Bright: MX CEO Takeaways from the 2024 Money Experience Summit 

Utah Governor Spencer J. Cox took the stage at Money2020 to discuss what makes Utah a world class fintech hub.

On the main stage at Money20/20 Utah Governor Spencer Cox discusses what makes Utah home to so many successful fintechs. 

Utah Governor Cox Highlights why Fintechs Flourish in Utah

A lot comes to mind when people think of Utah, but something else has begun to come up more often &mdash; Fintech. Utah Governor Spencer J. Cox took the main stage at the <a href="https://www.money2020.com/">Money20/20 USA</a> conference to discuss just that.&nbsp;
Governor Cox spoke to what makes Utah such a profitable and unique place for fintech companies to flourish. He emphasized Utah's home-grown talent, progressive regulatory structure, and strong fintech foundation.
Utah has long cultivated both innovators and disruptors in the field of fintech. When asked what makes the talent in Utah different and successful in fintech, Governor Cox started by assuring the audience that people in Utah &ldquo;are not as weird as you think.&rdquo; He went on to elaborate by noting that &ldquo;we (Utah) are not San Francisco, we are not New York. And, we do not want to be.&rdquo; He describes Utahns wanting to live in a beautiful place, raise families, and be away from the hustle of more traditional fintech hubs. But in no way does that diminish the state's commitment to fintech.
Utah universities are establishing foundational cross-discipline fintech degrees to foster a bright future for home-grown success in fintechs. And, for those seeking to move to Utah, Governor Cox is ready to welcome them with open arms and just one requirement. He said that any company looking to move to Utah only has to require each of their employees to volunteer 20 hours of service every year, e to give back to the state community that will give them a place to call home.&nbsp;
In speaking to the role of government, Governor Cox said it &ldquo;can hamper innovation, but we wanted to foster it.&rdquo; For example, Utah has an established <a href="https://www.utah.gov/pmn/sitemap/publicbody/6159.html">technology advisory board</a> aimed to help build new regulations from the bottom up rather than the top down. MX&rsquo;s own Chief Advocacy Officer, Jane Barratt, serves as a member of this council. Governor Cox explained that rather than trying to catch people breaking the rules, the government's &ldquo;job is to help people do things the right way.&rdquo;&nbsp;
Merging compliance with innovation can be difficult. For many fintech hubs, balancing the motivations of banking and tech is a challenge. According to Governor Cox, &ldquo;every bank needs to be a fintech. And, every fintech needs to be a bank.&rdquo; Utah is where that contradiction may be a reality.&nbsp;
One specific example Consumer Financial Protection Bureau&rsquo;s final Section is the Consumer Financial Protection Bureau&rsquo;s final rule under Section <a href="https://www.mx.com/blog/final-1033-rule-quick-takes/">1033</a> of the Dodd-Frank Act for consumer-permissioned data sharing. Cox said, &ldquo;data sharing (regulations) was driven by Utah companies&rdquo; (like MX).&nbsp;
We&rsquo;re proud to have our headquarters in Utah as the state continues to strive to be a place for fintech innovation to flourish.

Why Utah is the Place to Be for Fintechs

Wes Hummel gave a keynote address at MXS that highlighted new products and innovations from MX.

MX shares new product announcements and innovations at the 2024 Money Experience Summit. 

MX Product Innovations to Improve Deposits, Processes, and Engagement

It&rsquo;s more competitive - and expensive - than ever for financial providers to grow deposits, acquire new customers, and market the right products and services to the right consumers. And, consumers are also facing higher prices in their day-to-day lives.&nbsp;
In this challenging environment, financial providers have a clear opportunity to win trust with consumers, which leads to higher engagement and retention.&nbsp;
&ldquo;When you solve problems for customers in times like these, it creates a noticeable shift in their lives, and loyalty follows,&rdquo; said Wes Hummel, MX&rsquo;s Chief Product and Technology Officer at the 2024 Money Experience Summit.
MX&rsquo;s latest product innovations are helping financial providers make things easier and more streamlined for consumers. Here&rsquo;s a rundown of the latest innovations from MX:&nbsp;
<h2>Simplified Connectivity</h2>
Consumers want to connect accounts for various reasons, ranging from financial management to payment facilitation to loan applications. But, when the process doesn&rsquo;t work or is too slow, consumers are quick to abandon the process. MX&rsquo;s Simplified Connectivity is designed to reduce abandonment and failure rates by merging multiple API calls into a single request. This also helps decrease session duration and remove challenges for the consumer trying to connect.&nbsp;
<h2>Investment Data</h2>
With MX&rsquo;s <a href="https://www.mx.com/products/investment-data/">Investment Data Enhancement</a>, financial providers can deliver more personalized investment management services, increase customer retention, and drive better financial outcomes for their customers. It does this by:&nbsp;&nbsp;
<ul>
<li style="font-weight: 400;" aria-level="1">Providing enriched, normalized investment holdings data for deeper insights into a customer's investment portfolio.&nbsp;</li>
<li style="font-weight: 400;" aria-level="1">Allowing consumers to securely consolidate their investment holdings into a single, holistic view using a unified API.&nbsp;</li>
<li style="font-weight: 400;" aria-level="1">Cleansing and classifying data into clear, human-readable descriptions&ndash; making it easier to identify, organize, and act on investment data.&nbsp;</li>
<li style="font-weight: 400;" aria-level="1">Enabling financial providers to leverage comprehensive customer portfolio insights and enable hyper-targeted cross-selling, upselling, and personalized loan offerings.</li>
</ul>
<h2>Deposit Switching</h2>
MX also launched new integrations that will enable financial services providers to <a href="https://www.mx.com/news/mx-launches-deposit-switch-integrations/">streamline the direct deposit switching process</a> for consumers. MX will integrate with Atomic to help financial providers more easily identify customers who could benefit from an account switch, and make it simple for consumers to actually switch.
Wes also shared demos and overviews of MX&rsquo;s <a href="https://www.mx.com/products/data-access/">Data Access</a>, <a href="https://www.mx.com/products/customer-analytics/">Customer Analytics</a>, and <a href="https://www.mx.com/products/personal-financial-management/">Manage Money Dashboard</a>. Behind every new innovation, it all comes down to how to more effectively leverage consumer-permissioned data to drive better outcomes for consumers.&nbsp;
<blockquote>
With expanded data and clearer understanding, you can understand your customer&rsquo;s goals and you can be there for them helping them in their financial lives. This is the power of MX. We are a data company. -Wes Hummel, MX Chief Product and Technology Officer
</blockquote>
Check out the <a href="https://www.mx.com/product-forums/gain-trust-grow-deposits-improve-processes/">full replay of this session</a> to learn more.&nbsp;

All About the Data: New Product Innovations Unlock New Insights and Capabilities

The CFPB's Section 1033 of the Dodd-Frank Act 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. 

What is CFPB Dodd-Frank Act Section 1033?

In this post, we will cover:
<ul>
<li><a href="#what-is-1033">What is the Dodd-Frank Act Section 1033?</a></li>
<li><a href="#what-is-the-cfpb">What is the Consumer Financial Protection Bureau (CFPB)?</a></li>
<li><a href="#why-is-1033-important">Why is Section 1033 Important?</a></li>
<li><a href="#what-data-is-covered">What Data is Covered by Section 1033?</a></li>
<li><a href="#compliance-dates">When Will Financial Providers Need to be Compliant?</a></li>
<li><a href="#whats-next">What&rsquo;s Next?</a></li>
<li><a href="#why-data-rights-matter">Why Consumer Financial Data Rights Matter</a></li>
<li><a href="#why-standardized-apis">Why Standardized APIs are Important</a></li>
<li><a href="#how-mx-can-help">How MX Can Help</a></li>
<li><a href="#additional-resources">Additional 1033 Resources</a></li>
</ul>
At MX, core to delivering on our mission to empower the world to be financially strong is the ability for consumers to access, direct, and control their financial data to improve their financial outcomes.
We believe in the power of financial data to unlock new insights and drive better money experiences that benefit companies and consumers alike. To enable better decisions, experiences, and outcomes, financial data should be accessible and actionable for all consumers to better enable decisions, experiences, and outcomes. And, increased competition, a level playing field, and increased digital innovation can help improve financial outcomes for consumers.
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 clients, partners, and the wider financial services ecosystem to accelerate <a href="https://www.mx.com/blog/what-is-open-banking/">Open Banking</a> and secure, <a href="https://www.mx.com/blog/what-is-consumer-permissioned-data/">consumer-permissioned data</a> sharing for nearly a decade.
On October 19, 2023, the Consumer Financial Protection Bureau (CFPB) published its long-awaited <a href="https://www.consumerfinance.gov/about-us/newsroom/cfpb-proposes-rule-to-jumpstart-competition-and-accelerate-shift-to-open-banking/">notice of proposed rulemaking (NPRM)</a> for personal financial data rights under Dodd-Frank Act Section 1033. 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 promulgation of this 1033 rulemaking. Now, we&rsquo;re likely just weeks away from the anticipated final rule from the CFPB.
Once final, the clock starts for financial data providers and recipients to meet outlined compliance timelines and requirements. The compliance period will vary depending on the size of each institution. But, that doesn&rsquo;t mean wait. The time is now for financial institutions to begin getting ready to meet obligations under this new rule.
<h2 id="what-is-1033">What is the Dodd-Frank Act Section 1033?&nbsp;</h2>
In 2010, Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act, also known as the Dodd-Frank Act. Section 1033 is an important milestone to ensure consumers have the right to access and control their financial information.
It 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;
<blockquote>
Getting ready for 1033? <a href="https://www.mx.com/open-banking-made-easier/" target="_blank" rel="noopener">Schedule a strategy session</a> to help you prepare for the final rule.
</blockquote>
<h2 id="what-is-the-cfpb">What is the Consumer Financial Protection Bureau (CFPB)?</h2>
The Consumer Financial Protection Bureau (CFPB) is a U.S. government agency that aims to protect consumers from unfair treatment by financial institutions. In its own words, the CFPB is &ldquo;dedicated to making sure you are treated fairly by banks, lenders and other financial institutions.&rdquo; It implements and enforces Federal consumer financial law and ensures that markets for consumer financial products are fair, transparent, and competitive.
<h2 id="why-is-1033-important">Why is Section 1033 Important?</h2>
This rulemaking is one of the most substantive regulatory changes to happen in the financial industry in many years. It fundamentally changes, for the better, how consumers can access and share their financial data. And, 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 <a href="https://www.mx.com/blog/what-is-open-finance/" target="_blank" rel="noopener">Open Finance</a>, improve the money experience, and help drive better financial outcomes for millions of Americans.
But, Open Finance isn&rsquo;t simply a checkbox to meet forthcoming 1033 compliance and regulatory obligations. It provides significant benefits to consumers and financial services providers.&nbsp;
Consumers gain more choice and control over the data they share and how they engage with their finances with the freedom and flexibility that Open Finance enables. And, they gain unparalleled access to a broader range of products and services.
It also allows consumers to more easily connect their various financial accounts and data together into a single view &mdash; enabling a more seamless money experience.
For financial services providers, Open Finance enables:
<h3>Better Fraud and Risk Management</h3>
By leveraging an open finance API rather than screen scraping, consumers never have to share their username and password, and financial providers eliminate the risk of sharing credentials.
<h3>More Accurate Customer Profiles</h3>
Financial providers can gain access to real-time consumer-permissioned financial data. This helps them better understand their customer needs and identify product and partnership opportunities.
<h3>Enhanced Customer Experiences</h3>
By putting consumers in the driver&rsquo;s seat, financial providers can build trust and improve relationships, leading to greater customer satisfaction and loyalty. And, with better visibility into a consumer&rsquo;s financial life, financial providers can deliver more personalized, intuitive experiences to meet them where they are.
<h2 id="what-data-is-covered">What Data is Covered by Section 1033?&nbsp;</h2>
It&rsquo;s important to note that the CFPB isn&rsquo;t attempting to cover the entire financial ecosystem with this initial rule under Section 1033. It specifically calls out Regulation E accounts and Regulation Z credit card accounts to start, as well as digital wallets and payment facilitation products.
This includes:
<ul>
<li>Checking accounts</li>
<li>Savings accounts</li>
<li>Credit cards</li>
<li>Prepaid cards</li>
<li>Digital wallets</li>
<li>Other electronic payments</li>
</ul>
But, it does exclude first-party payments as part of those payment facilitation products, which the CFPB defines as a transfer initiated by the payee or an agent on behalf of the underlying payee. First-party payments include payments initiated by a loan servicer.
Within these types of accounts, specific covered data outlined includes:
<ul>
<li>Transaction information, including historical transaction information</li>
<li>Account balances</li>
<li>Information to initiate payment to or from a Regulation E account</li>
<li>Terms and conditions related to providing a consumer financial product or service</li>
<li>Upcoming bill information</li>
<li>Basic account verification information</li>
</ul>
Exceptions to this covered data would include:
<ul>
<li>Any confidential commercial information, including an algorithm used to derive credit scores or other risk scores or predictors</li>
<li>Any information collected by a data provider for the purpose of preventing fraud or money laundering, or detecting, or making any report regarding other unlawful or potentially unlawful conduct</li>
<li>Any information required to be kept confidential by any other provision of law</li>
<li>Any information that a data provider cannot retrieve in the ordinary course of its business</li>
</ul>
<h2 id="compliance-dates">When Will Financial Providers Need to be Compliant?</h2>
In the final rule, the CFPB has extended compliance deadlines beyond the NPRM to allow for more time for data providers and third parties to meet expectations. And, the smallest institutions (banks and credit unions with less than $850 million in assets), will not be required to provide data under the rule.
Compliance deadlines in the final rule for institutions with more than $850M in assets are:
<img src="https://cms.mx.com/assets/4a891c23-7bb4-48d7-880e-2391f7ee3df8?width=1200&amp;height=738" alt="1033 Compliance Deadlines" />
<h2 id="whats-next">What&rsquo;s Next?</h2>
With the final rule in place, now is the time to start understanding what it means for your organization and make plans to meet outlined compliance data.&nbsp;
In addition, the CFPB finalized a rule in June 2024 that outlines the qualifications to become a <a href="https://www.consumerfinance.gov/personal-financial-data-rights/applications-for-open-banking-standard-setter-recognition/#:~:text=The%20rule%20identifies%20the%20attributes,process%20and%20appeals%2C%20and%20transparency." target="_blank" rel="noopener">recognized industry standard-setting body</a>, which can issue consensus standards that companies can use to help them comply with the CFPB&rsquo;s upcoming Personal Financial Data Rights Rule. The rule identifies the attributes that standard-setting bodies must demonstrate in order to be recognized by the CFPB as an open banking standard setter, including:&nbsp;
<ul>
<li>Openness: The process must be open to all interested parties.</li>
<li>Transparency: Procedures must be transparent and publicly available.</li>
<li>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.</li>
<li>Consensus: Standards development must proceed by consensus, with fair consideration of comments and objections.</li>
<li>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.</li>
</ul>
The <a href="https://www.mx.com/blog/why-fdx-matters/#what-is-fdx" target="_blank" rel="noopener">Financial Data Exchange (FDX)</a> submitted the first application to be recognized as an industry standard-setting body for open banking. The CFPB is currently taking public <a href="https://www.consumerfinance.gov/about-us/blog/cfpb-launches-public-comment-process-for-open-banking-standard-setter-recognition/" target="_blank" rel="noopener">comments on the FDX application</a>. Today, more than <a href="https://financialdataexchange.org/FDX/News/Announcements/FDX%20Hits%2094%20Million%20Accounts,%20CFPB%20Publishes%20FDX's%20Standard-Setting%20Application.aspx" target="_blank" rel="noopener">94 million consumer accounts</a> are now actively using the <a href="https://www.mx.com/blog/why-fdx-matters/#what-does-fdx-api-include" target="_blank" rel="noopener">FDX API</a> for secure, permissioned data sharing.
<h2 id="why-data-rights-matter">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 id="why-standardized-apis">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 <a href="https://www.mx.com/blog/screen-scraping-vs-bank-apis-whats-the-difference/" target="_blank" rel="noopener">screen scraping</a> 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 id="how-mx-can-help">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 our <a href="https://www.mx.com/products/data-access/" target="_blank" rel="noopener">Data Access</a> solution.
Built to FDX standards, Data Access improves the data sharing experience with a secure, open finance API. It also enables financial institutions to better monitor and manage where data is shared, unlock actionable insights to drive growth and retention, and meet expected 1033 compliance obligations.&nbsp;
Financial providers can better monitor and manage what data is leaving their platform and where it goes, uncovering new opportunities to grow. Plus, automated notifications and reporting make it easy to detect anomalies, identify customer needs, and report on compliance requirements.
Let us help you get started with making sense of expected obligations &mdash; and opportunities &mdash; within your open banking journey. Talk to our experts today.
<h2 id="additional-resources">Additional Section 1033 Resources</h2>
Tap into our library of resources to learn more about Section 1033.
<ul>
<li><a href="https://www.mx.com/whitepapers/how-data-access-supports-1033/" target="_blank" rel="noopener">How MX&rsquo;s Data Access Can Help Financial Providers Get Ready for Section 1033</a></li>
<li><a href="https://mx.com/guides/where-financial-providers-may-fall-short-on-1033-reqs/" target="_blank" rel="noopener">Getting Ready for Section 1033 Obligations: Where Financial Providers May Fall Short</a></li>
<li><a href="https://www.youtube.com/watch?v=BLH5pIQrsxg&amp;t=15s" target="_blank" rel="noopener">CFPB Director Chopra Addresses FDX Spring Global Summit</a></li>
<li><a href="https://www.mx.com/whitepapers/secondary-use-cases/" target="_blank" rel="noopener">Why Enabling Secondary Use Cases for Consumer Benefit is Critical</a></li>
<li><a href="https://www.mx.com/whitepapers/mx-perspective-on-consumer-data-rights-rulemaking/" target="_blank" rel="noopener">MX Comments on the CFPB&rsquo;s Required Rulemaking on Personal Financial Data Rights</a></li>
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Section 1033 Final Rule: Quick Takes on Key Changes — Deadlines, Scope, and Secondary Use

MX Founder Ryan Caldwell Returns as Chief Executive Officer

How to Encourage Consumers to Use New Money Management Approaches

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

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