Rule 1033: An Overview

On October 22, 2024, the Consumer Financial Protection Bureau (CFPB) issued its final rule to implement its authority under Section 1033 of the Dodd-Frank Act, designed to make open banking easier.

It is a landmark regulation that gives consumers greater control over their personal financial data and introduces a number of challenges for financial institutions.

Rule 1033 requires banks, credit unions, and other financial institutions to provide consumers and authorized third parties with secure access to financial data, including transaction histories, costs, and account usage. By empowering consumers to share their data, Rule 1033 lays the groundwork for open banking in the United States, supporting innovation and competition in financial services.

However, before implementation is possible, affected organizations will need to make significant operational and technological changes. Rule 1033 also places substantial demands on institutions to upgrade their data infrastructure, enhance cybersecurity measures, and comply with stringent regulatory requirements designed to protect consumer information.

This white paper provides a comprehensive look at Rule 1033 and its implications for financial institutions and their customers. It also shares insights and perspectives from industry leaders at PayPal, Discover, and DataVisor as they weigh in on this critical standard.

A Broad Scope