FPF Testimony Before the U.S. House of Representatives Financial Services Subcommittee on Financial Institutions

Today, FPF Senior Fellow Zoe Strickland testified before the U.S. House of Representatives Financial Services Subcommittee on Financial Institutions, providing expert insight about data privacy in the financial system, focusing specifically on rulemaking under Section 1033 of the Dodd-Frank Act. 

With over 25 years of experience as a global chief privacy officer at Fortune 20 government, retail, healthcare, and finance companies, Zoe provided informed observations about data privacy and financial data privacy, specifically focusing on open banking.

“Open banking enables consumers to have more control over their data and funds. Properly implemented, it can support numerous consumer benefits and opportunities, enabling better money management, financial health, and privacy. Open banking can be a shining example of modern privacy – consumers should expect to have control over their information – and hopefully this sense of control will permeate other aspects of their lives, leading to better services and competition,” details Strickland in her written testimony.

Ms. Strickland’s testimony notes that the CFPB is authorized to issue rules under Section 1033 of the Dodd-Frank Act that require covered entities to make information about consumers who use their financial products available to them upon request. The CFPB undertook a lengthy and extended process to issue these rules, and engaged with numerous stakeholders and closely monitored market developments to promote consumer interests, innovation, and competition. Ms. Strickland’s testimony lists a number of valuable aspects to the rule, including its treatment of consumer controls, screen scraping, security obligations, and industry standards. Her testimony also highlights five areas of potential improvement, including to rule provisions regarding secondary uses of information, De-Identification, Payment Initiation information, Fees, and Digital Wallets.

You can watch the full testimony on the Committee on Oversight and Government Reform’s webpage here and read the written testimony here.