FDATA commends introduction of New York Financial Data Rights Act

Source: FDATA

The Financial Data and Technology Association (FDATA), a trade association representing more than 30 financial technology firms and consumer-permissioned data access platforms across the US and Canada, has expressed support for the introduction of the New York Financial Data Rights Act (A10640) and its Senate companion, (S09483), that would provide for the accessibility of consumer financial data and prohibit fees for the transfer of such data to authorized parties, affirming consumers’ right to access and share their financial data at no cost with the financial services and applications they choose.

The proposed New York Financial Data Rights Act would affirm the ability of New Yorkers to securely access and share their financial data — at no cost — with the financial services and applications they choose. The bill would prohibit financial institutions from charging fees or imposing unreasonable barriers when consumers or small businesses seek to share covered financial data with authorized third parties.

“Your financial data belongs to you, and access to it should never be obstructed by fees. I am proud to stand alongside Senator May in sponsoring this legislation to protect the freedom of New Yorkers to transact online without being burdened by unnecessary barriers and costs,” said Assemblyman Clyde Vanel.

“New Yorkers shouldn’t have to pay to access their own financial data. Whether you’re buying a home or a car, or tracking your costs daily, this information is required. My bill is a common-sense solution to prevent unnecessary costs and complications in everyday life,” said Senator Rachel May.

Under the legislation, consumers and small businesses would be able to securely port key financial information, including transaction data, account balances, and product terms, in a standardized, machine-readable format. The bill also establishes safeguards around consent, data security, and reasonable access standards, while preserving the ability of financial institutions to manage legitimate safety and soundness risks.

“Consumers are the true owners of their own personal financial information, and they should never have to pay to access it,” said Delicia Reynolds Hand, senior director, digital marketplace at Consumer Reports.

FDATA North America executive director Steve Boms

“Section 1033 of the Consumer Financial Protection Act gave consumers new rights to share their financial data with service providers of their choice, but fifteen years later consumers still lack vital protections needed to take advantage of the law. Consumer Reports strongly supports the proposed New York Financial Data Rights Act to ensure consumers maintain control over who has access to their financial data and can share it with third-party service providers without paying fees to their bank or financial institution.”

“Consumers should control access to their own financial data,” said Steve Boms, executive director at FDATA.

“This legislation would help ensure that New Yorkers can access and share their financial information without fees and continue using the tools they rely on to manage their finances.”

FDATA supports the legislation as an important step to reinforce consumer and small business financial data rights, promote competition and innovation, and maintain a fair, consumer-driven financial services ecosystem in New York.

Further reading: FDATA welcomes Kat Cloud to its board of directors