Independent Banker highlights what banks need to know about the open banking rule

Community banks with $850 million or more in assets will soon need to comply with the new open banking regulation, and smaller institutions might want to prepare for data sharing if their customers demand it, according to the latest Independent Banker magazine.

Background: The Consumer Financial Protection Bureau in October finalized its Personal Financial Data Rights Rule, which says customers will be able to authorize a third party to access data associated with their bank accounts, credit cards, mobile wallets, payment apps and other financial products. Financial providers must make this information available—without charging fees—through a secure digital interface.

Deadlines: The rule’s compliance dates are staggered based on size, with the largest institutions having to comply by April 1, 2026, while the smallest covered institutions will have until April 1, 2030.

Resource: ICBA recently released its Open Banking Guidebook, which explains ICBA’s advocacy related to the rule; outlines compliance requirements; and highlights key definitions, exemptions, and implementation timelines.

Ongoing Advocacy: ICBA remains concerned about the impact of the rule on consumer data security and privacy and is carefully monitoring the progress of a legal challenge to Section 1033 in federal court. ICBA also continues advocating to improve provisions of the rule, including eliminating the fee prohibition and increasing bureau oversight of third-party data recipients.

Access: The magazine is available on the Independent Banker website and via the digital edition.