O FOR IMMEDIATE RELEASE
Toronto, Ontario, 20 October 2017 — Onist fully backs the Consumer Financial Protection Bureau’s (CFPB) new principles announced this week for protecting and safely sharing consumers’ financial data with third party companies. The principles cover data access, scope and usability, control of data and informed consent, payment authorizations, data security, transparency, data accuracy, accountability for access and use, and disputes and resolutions for unauthorized access.
Consumers today use many services that require data sharing and see real benefit from the efficiency and value they provide. However there are currently many barriers to consumers accessing and sharing their data with such services even though the issue is around access to the consumer’s own data and they have decided the data sharing facilitates their financial life.
In response to this issue, thirty-five financial service providers that help consumers address their finances using this type of data sharing formed an industry consortium, the Consumer Financial Data Rights group (CFDR), to support consumer’s right to access to their financial data. Members include Onist, Affirm, Envestnet | Yodlee, Kabbage, Petal and others.
The CFDR Group released this statement: “The CFDR group and its 35 member companies applaud the Consumer Financial Protection Bureau’s (CFPB) publication of thoughtful principles regarding a consumer’s ability to share their financial data through third-party tools that can help improve their financial lives. As a group, we have sought to bring the voice of the consumer into this debate. We are pleased that the CFPB’s principles align with the CFDR’s view: consumers – not their bank – should control their own financial data.”
Onist Co-Founder and CEO Brad Kotansky says, “We couldn’t be happier with the CFPB’s new principles. They’re a promising first step towards taking back consumers’ data rights. Onist is founded around collaboration and connection, so we look forward to the industry taking further strides that will allow us to help connect our clients with their data, documents and the people who need it most, to make their financial lives easier.”
Steve Boms, VP of Government Affairs for Envestnet | Yodlee and CFDR Member said, “The principles published today by the Consumer Financial Protection Bureau enshrine core tenets that all responsible players in the financial services ecosystem should adopt: consumers should have full control of their financial data and should expect transparency and security from the entities to which they permission it. The Bureau’s release of data-sharing principles represents a huge win for consumer financial wellness.”
The consumer protection principles are available here. It should be noted that these principles are not binding. The CFPB’s announcement states, “The principles do not establish binding requirements or obligations relevant to the Consumer Bureau’s exercise of its rulemaking, supervisory, or enforcement authority. In addition, they are not intended to alter, interpret, or otherwise provide guidance on existing statutes and regulations that apply in this market. Lastly, although the Consumer Bureau stands ready to facilitate constructive efforts or to take other appropriate action to protect consumers, the principles are not intended as a statement of the Consumer Bureau’s future enforcement or supervisory priorities.”
While the CFPB’s principles are not the same as a new regulation, Onist is encouraged that they begin to set expectations for institutions to honor their customers’ preference to access their financial data in ways they view as beneficial.
Founded in 2015 by financial services industry veterans, Onist is the first SaaS financial management platform that empowers true collaboration around the family’s entire financial picture. The platform provides families with a collaborative approach to managing their household finances. Onist is consumer-centric and breaks down the typical financial management silos. Onist has a team of 15 experts and offices in Toronto and Scottsdale, Arizona. Onist recently opened their platform to the public and beta is expected to be removed in 2018. Onist makes financial management smarter, easier and more collaborative. www.onist.com
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