How MX’s Data Access Can Help Financial Providers Get Ready for Section 1033
We’re inching closer to a final rule from the Consumer Financial Protection Bureau (CFPB) under Section 1033 of the Dodd-Frank Act. This is a significant milestone in creating personal financial data rights for consumers — and creating a more standard and secure way for consumers to control, manage, and share their financial data.
Financial institutions, fintechs, and other data providers and recipients are looking ahead to how they will meet compliance requirements and deadlines ahead of the expected final rule this Fall 2024. While some details will evolve based on industry feedback, there are things that financial providers can do today to get ready. Here’s how MX can help.
We believe customer-first, permissioned, and ethical use of data should be the norm. This has always been at the core of what MX does.
How MX’s Data Access Supports Open Finance Standards
At MX, our solutions and products are built with consumer-permissioned data sharing at the forefront. And, we make it easy for financial institutions of all sizes to accelerate open finance adoption and enhance the money experience for consumers through our Data Access product.
MX’s Data Access platform enables institutions to deliver a safe and secure connectivity experience for their customers — and helps financial providers get ready for potential requirements under Section 1033 rulemaking in five key ways:
1. API Connectivity
Data Access enables financial institutions to more easily create or evolve their Open Banking APIs to ensure they meet FDX standards, deliver the required data elements, and follow authentication protocols, such as OAuth and OIDC. In addition, Data Access simplifies the process of transitioning intermediaries to APIs by standardizing templates, creating API documentation, and onboarding workflows.
2. Eliminating Screen Scraping
MX’s Data Access is interoperable across all intermediaries, enabling financial providers to accelerate their path to eliminate screen scraping from their environment. In addition, the Data Access platform creates better visibility into the open finance journey by providing real-time performance metrics, insights into data sharing activity, and support tools to easily manage and maintain connections.
MX’s Data Access platform creates better visibility into the open finance journey by providing real-time performance metrics, insights into data sharing activity, and support tools to easily manage and maintain connections.
3. Providing Covered Data
The API Overview and Test Users feature within Data Access takes the guesswork out of understanding what data needs to be included in Open Banking APIs. Financial providers can access — per use case and account type — which data fields are required and under what conditions. And with our Test Users feature, data providers and data recipients can test the APIs before they go live to ensure that all required data is there.
4. Consent Management
Financial providers can easily embed Data Access’ Consent Management Dashboard into their mobile and online banking portals so that consumers can see and manage where they have shared their financial data with a third party. Consumers can view when their data was last updated or revoke data sharing access with a third party.
Per proposed 1033 requirements, MX is working to add notifications to authorized third parties when a user revokes consent from the Consent Management Dashboard.
5. Performance Metrics
The CFPB currently proposes that data providers will need to publicly disclose API performance metrics on a monthly basis. MX is working to create a reporting user interface that simplifies disclosing metrics and provides financial institutions with real-time dashboards and proactive alerts about their API performance to address any issues before consumers experience connectivity issues.
Let us help you get started with making sense of expected obligations — and opportunities — within your open banking journey. Talk to our experts today.