Welcome to Innovating Payments Top 3 News Headlines for the Week of Nov. 6. In this issue, Rohit Chopra, Director of the Consumer Financial Protection Bureau (CFPB), told attendees at Money 20/20 that financial services are slowly moving toward open banking and open finance. According to Chopra, the CFPB will activate a dormant authority under the Consumer Financial Protection Act, which he expects to accelerate the shift.
The CFPB also kicked off its personal financial data rights rulemaking to strengthen consumers' access to and control over their financial data. Under the options the CFPB is considering, consumers could more easily walk away from companies offering poor products and services.
In other news, Nacha released its Q3 volume that showed 7.6 billion payments were processed valued at $19.2 trillion. Those are 4.2% and 6% increases from a year earlier.
Read on to learn more.
1. Director Chopra's Prepared Remarks at Money 20/20
Around the world and here at home, financial services are slowly moving toward open banking and open finance. A more decentralized and neutral consumer financial market structure has the potential to reshape how companies compete in the sphere. This week, the CFPB will launch the process to activate a dormant authority under Section 1033 of the Consumer Financial Protection Act that I expect will accelerate this shift. Read more.
2. CFPB Kicks Off Personal Financial Data Rights Rulemaking
Today, the Consumer Financial Protection Bureau (CFPB) outlined options to strengthen consumers' access to, and control over, their financial data as a first step before issuing a proposed data rights rule that would implement section 1033 of the Dodd-Frank Act. Under the options the CFPB is considering, consumers would be able to more easily and safely walk away from companies offering bad products and poor service and move towards companies competing for their business with alternate or innovative products and services. Read more.
3. ACH Network Moves 7.6 Billion Payments in Third Quarter of 2022; Strong Growth Continues for Same Day ACH
Steady growth continued for the ACH Network in the third quarter of 2022, with 7.6 billion payments processed valued at $19.2 trillion. Those are 4.2% and 6% increases, respectively, from a year earlier. Same Day ACH showed particularly robust growth. There were 176.6 million same-day payments, up 23.5% from the third quarter of 2021. The value of those payments-$478.5 billion-reflects a 102.7% rise from a year ago. Read more.
What are your thoughts on Director Chopra's remarks about financial institutions moving toward open banking and open finance? If the CFPB rule plays out as proposed, how might consumers' access to and control over their financial data impact your financial institution and its services? According to Nacha, Same Day ACH showed robust growth for Q3. How did this play out in your financial institution?
Check back soon for our next issue, highlighting the industry's most pressing and need-to-know developments. Until then, visit us online at Innovating Payments.
AUTHOR: Joe Casali, AAP, NCP
Executive Vice President
As the EVP of Payments Innovation for NEACH, Joe focuses on exploring innovative solutions and technologies that will help position members for success, both now and in the future. Connect with Joe to read more of his blogs, articles, and posts.