Implications of Open Banking Regulations on Fintechs

TOPICS

Data Risks & Opportunities

FIW Year

2024

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Summary + Key Findings

The panel discusses the implications of open banking regulations on fintechs, emphasizing enhanced financial inclusion and collaborative innovation.

🔑 Consumer Empowerment: Open banking regulations will allow consumers to control their financial data, enhancing their ability to make informed decisions. This shift could reshape the financial landscape, fostering competition and innovation.

🔑 Collaboration Over Competition: Banks and fintechs need to collaborate to create better products and services, leveraging each other’s strengths to meet consumer needs more effectively and efficiently.

🔑 Financial Inclusion: Open banking has the potential to significantly improve access to financial services for unbanked and underbanked populations, allowing them to participate more fully in the economy.

🔑 Regulatory Clarity: As regulations evolve, clear guidelines on data privacy and security will be essential to foster trust among consumers and ensure compliance across the sector.

🔑 Learning from Global Models: The U.S. can benefit from studying successful open banking implementations in other countries, adapting their best practices to enhance its regulatory framework.

🔑 Innovation Through Technology: The use of AI and advanced data analytics can provide tailored financial solutions, improving consumer experiences and outcomes.

🔑 Evolving Risk Management: As the open banking landscape develops, the industry must establish robust frameworks for risk management to address potential data breaches and fraud effectively.

This session summary was AI-generated using NoteGPT.

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On June 5, 2024, the Consumer Financial Protection Bureau released the regulation around “Required Rulemaking on Personal Financial Data Rights; Industry Standard-Setting.” The newly released regulation facilitates the adoption of open banking as we await release of the rest of the final 1033 rulemaking. Open banking refers to the practice of allowing consumers to access and share their financial data from different financial institutions through secure digital platforms, such as application programming interfaces (APIs), to increase competition, innovation, and transparency in the financial sector.

This event brings together leaders from the financial services and technology industries to provide valuable insights into how Open Banking is influencing the financial landscape, including risks to manage, and strategies for adapting to these newly implemented regulatory changes. The esteemed panel will also explore data and privacy concerns that consumers may have pertaining to Open Banking.

The participating panelists work very closely to the topic and are the leading experts on understanding the implications of Open Banking from different perspectives.

Session Speakers

Arti Srivastava

Investor, Citi Impact Fund

Erin Allard

President, Prism Data

Erin has spent her nearly 20 year career at the intersection of banking and technology, with a focus on bank sponsorship, partnerships, risk management, and regulatory compliance. Following a lengthy tenure at The Bancorp and Green Dot, during which she filled leadership roles spanning product, strategy, innovation, business line ownership, and various controls functions, Erin was the Chief Operating Officer at Bloom Credit, and most recently the General Manager at Prism Data, prior to becoming President. In addition to her work at Prism, Erin is also the President of the Board of Directors at Odyssey Charter School, a 2200-student K-12 Greek language and mathematics-focused charter school in Wilmington, DE.

John Pitts

Head of Policy, Plaid

John is the Head of Policy for Plaid, a financial services technology company. Plaid helps consumers connect their financial services accounts to apps like Venmo, Betterment, and Acorns. In his role, John advocates for consumers’ right to access, share, and control their financial data. He also advocates for financial data practices based on consumer-first principles of transparency, permission, and privacy. He has consulted on financial data and consumer protection laws and regulations in the US, Canada, UK, EU, and Australia. Before joining Plaid, John served as the Deputy Assistant Director for Intergovernmental Affairs at the Consumer Financial Protection Bureau. There, John worked with the state Attorneys General to promote cooperation and coordination between the states in enforcing the Dodd-Frank Consumer Financial Protection Act. John started his career as an attorney with Orrick, Herrington & Sutcliffe.

Michele Scarbrough

Head of Consumer Regulatory Policy and Strategy, Citi

Michele oversees and leads the policy, advocacy, and supervisory strategy across Citi with the CFPB. Previously, Michele served in several capacities with the Consumer Financial Protection Bureau, where she focused on reaching collaborative policy changes that work for both consumers and financial institutions. Michele has served as a subject matter expert on a variety of consumer financial products, services, and regulations spanning from credit cards, payments, collections, credit scoring, subprime markets, loan servicing, to financial inclusion. Prior to her role at the CFPB, Michele worked in the U.S. House of Representatives, where she covered financial services, defense, and foreign affairs for a prominent member of the House Ways and Means Committee. Michele holds three Bachelor of Arts degrees from the University of Georgia in Political Science, Sociology, and International Affairs. She also holds a Master of Public Policy from Georgetown University in Finance and Economic Policy.

Vikas Raj

Managing Partner, ResilienceVC

Vikas is the Co-Founder and Managing Partner of ResilienceVC, a seed stage fintech venture fund investing in visionary entrepreneurs making financial services work for all Americans. Previously, Vikas was Managing Director at Accion Venture Lab, leading global investment efforts and serving on the boards of notable companies like Self Inc., Konfio, and Tienda Pago. He has invested in over 100 startups over the course of his career, with a particular focus on fintech solutions for underserved consumers and small businesses. Vikas is an adjunct professor at Columbia Business School and Johns Hopkins SAIS, teaching courses on impact and venture capital, and a fintech contributor at Forbes.

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