Pertinent to all of us who wish for smoother connections between services like Tiller and our financial institutions, the Consumer Financial Protection Bureau issued its Final Personal Financial Data Rights Rule today. This is an important step in the direction of the widespread adoption of open banking standards that should have numerous benefits, not the least of which will be to make life easier for those of us who enjoy aggregating financial data. As the summary of the rule says:
“The final rule requires banks, credit unions, and other financial service providers to make consumers’ data available upon request to consumers and authorized third parties in a secure and reliable manner; defines obligations for third parties accessing consumers’ data, including important privacy protections; and promotes fair, open, and inclusive industry standards.”
The only bad news is that this is still going to take a while: the largest banks are required to comply with the rule by April 2026 while the smallest banks have until April 2030. Hopefully, banks will see benefit in moving sooner than that, but I fear they are more likely to see the costs.
Thanks for sharing. It would be interesting to know which financial entities and financial software tools have been leading the way for the open banking standards. It’s great to know that Tiller Money is leading the way in the financial software space!
Yeah, I’m not sure. There must be an emerging industry of firms offering to manage this transition for institutions for a (handsome) fee since lots of banks won’t have the internal capacity or expertise to do it, but that’s pretty far on the back end and I have no idea who they are.
@dmetiller thanks for sharing this. It’s a big win!
This will effectively mandate open banking. Tiller was a pioneer with one of the first open banking implementations, and we continue to be huge advocates of open banking as the most secure way for customers to permission and manage high quality data feeds to trusted services like Tiller.
This is a win for consumers because it clarifies that our data belongs to us, not banks, and we should be free to share that information in unencumbered ways. Slow progress, but with luck this continues to push us towards better data feeds.
(And to your question @dmetiller about who is managing this for banks… in many cases it is the aggregators themselves that are building the APIs for the banks; they know what makes for a robust API for companies like Tiller, and they’re using that knowledge to build the open banking interfaces for the banks.)
There definitely will be some stragglers here, but the good news is that many smaller institutions are actually serviced by platforms like Jack Henry, Finserv, Finstra and others and Yodlee has made good progress already with those companies in converting thousands of smaller institutions to open banking connections already!