A naukri.com initiative
Pymnts
1d
273
Image Credit: Pymnts
Amid Rule 1033 Uncertainty, Banks Urged Not to Retreat on APIs
- Pay by bank is expected to remain a prominent feature in the financial sector despite uncertainties surrounding the CFPB's Rule 1033, also known as the open banking rule.
- The CFPB expressed its intention to petition a U.S. District Court to rescind the rule, indicating a potential shift in regulatory landscape.
- Legal proceedings may evolve slowly, with various parties involved in challenging or defending the rule.
- Expectations are split on the fate of Rule 1033, with potential interventions from industry associations like the Financial Technology Association.
- Trustly, a leading pay-by-bank FinTech firm, has actively engaged in the dialogue around the rule's implications and potential revisions.
- Concerns have been raised about the privacy implications and operational inefficiencies caused by the current data sharing requirements under Rule 1033.
- There is a call for more streamlined processes and consumer-friendly practices in data sharing, especially regarding annual reauthorization.
- Banks are encouraged to embrace APIs as a means to enhance data security and connectivity with third-party providers, rather than seeking to scrap the rule entirely.
- The adoption of pay by bank solutions is forecasted to increase, with Trustly reporting growing interest from merchants and eCommerce platforms.
- The trend towards open banking APIs is anticipated to drive innovation in financial services and customer experiences, focusing on mobile accessibility and convenience.
Read Full Article
16 Likes
For uninterrupted reading, download the app