Academic journal article ABA Banking Journal

ABA Advocates for Security in Third Party Data Access Debate

Academic journal article ABA Banking Journal

ABA Advocates for Security in Third Party Data Access Debate

Article excerpt

Amid the ongoing debate over whether and how third parties should be permitted to access consumer financial data, ABA has been vocal on its position that customer security is paramount. The financial industry has been particularly focused on this issue since November, when the Consumer Financial Protection Bureau launched a formal inquiry into the obstacles consumers face in accessing and sharing their financial information with third parties.

The industry has long been concerned over a commonly used process called "screen scraping" in which consumers provide their online banking credentials to a third-party app or tool. ABA cautioned that this practice can introduce significant risks, as third-party financial aggregators often limit their own liability for loss, putting that risk on the consumer.

"Today, when a consumer forfeits their login credentials, data aggregators typically have access to their full account data for an unlimited time period," ABA VP Rob Morgan explained in an American Banker op-ed. "Instead, consumers should have intuitive control that allows them to easily view who is authorized to receive their data, modify what access they have and revoke that access when a service is no longer used. …

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