New Section 1033 Push Banks to Provide Customers with "Financial SIM Card"

Matt Kunkel, LogicGate CEO

The Consumer Financial Protection Bureau (CFPB) recently finalized a set of rules that would bring a similar level of convenience to the financial world. These changes to Section 1033 of the Dodd-Frank Act make it significantly easier for customers to retain access to their financial history no matter which bank they transact with. For banks, that means it’s critical to ensure that the right data is being collected, and that it can be easily integrated with external systems.

SIM cards are a helpful metaphor, but it’s important to note that these new Section 1033 rules don’t involve a physical device customers will need to carry around. That said, it’s still a useful point of comparison. Like SIM cards, these new rules establish a set of standardized information-sharing practices that will be made available to customers securely and without additional charges. That means customers can access and share their own data through third-party financial applications, and it also means that when customers change banks or credit unions, they can take their data with them. No more calling around to old banks for transaction data—that information now comes along for the ride.

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