What compliance with the CFPB 1033 rule looks like


What compliance with the CFPB 1033 rule looks like

Foundational requirements and growth opportunities

Keeping up with the evolving world of open banking will require a comprehensive and proactive approach, ensuring that your business not only complies with the new regulations but also excels in delivering value to both consumers and the broader financial ecosystem.

The open banking landscape is in the midst of a major transformation. Recently, the Consumer Financial Protection Bureau (CFPB) has recently unveiled the Personal Financial Data Rights Rule, also known as the 1033 rule. Designed to empower consumers by granting them greater control over their financial data, it also holds banks and financial service providers accountable to make this data accessible to authorized third parties. This initiative addresses a longstanding imbalance where financial institutions have leveraged customer data predominantly for cross-selling and marketing with scant transparency for consumers concerning data usage and consent revocation.

Additionally, the financial sector lacks a uniform definition of "customer data" and a standardized method for data sharing. In turn, data aggregators and third-party providers have historically resorted to "screen scraping," risking security and privacy.

What compliance with the CFPB 1033 rule looks like

Rules of the road

The proposed 1033 rule introduces a structured approach to managing and sharing consumer financial data, prioritizing consumer autonomy, privacy, and security. To align with this regulation, financial institutions need to focus on three key areas: 

  1. Infrastructure and architecture evaluation: Institutions must reassess their current technological frameworks to ensure they can support enhanced data access and consumer control mechanisms efficiently.
  2. Operational capacity enhancement: Organizations need to bolster their capabilities to handle an anticipated increase in data access requests while maintaining high security and service standards.
  3. Data security optimization: Enhancing security measures will be critical as institutions will handle more extensive data exchanges, necessitating robust protection against data breaches and unauthorized access.

Successfully addressing these areas will not only help meet regulatory demands, but it will also position financial institutions to lead in the market by delivering superior customer experiences and fostering trust through transparent, value-driven business models. Additionally, fintech companies and data aggregators will need to reevaluate their operational strategies to meet the new standards to ensure they remain competitive and compliant.

Assessing preparedness

Given the varying preparedness levels across organizations, there are a few things that should take priority on any institution’s readiness checklist. First, it’s important that your team understands how these new developments specifically impact your organization—and whether or not your consumer consent strategy adheres to the 1033 rule. Additionally, it’s best to assess (and possibly revise) your API strategy to ensure seamless connectivity with third parties. After that, we recommend considering whether you’ll need a dedicated portal for data aggregators and third-party access, as well as what potential request volumes might look like and whether your systems will be able to handle the load. You’ll also need to prepare to meet all regulatory requirements within the designated compliance timeframe and ensure your risk management strategies follow the new rule as well.

Taking the next step

While this new rule could trigger a laundry list of updates for your business to make, it is also an opportunity to set the bar even higher for consumer financial empowerment and data security. The 1033 rule not only demands significant adjustments in infrastructure, operational capabilities, and security protocols, but it also paves the way for enhanced customer satisfaction and trust. By embracing these changes, your business can lead in transparency and consumer-centric services, ultimately benefiting from stronger customer relationships and a competitive edge in the evolving financial landscape.

Contact us

John Graetz
Deloitte & Touche LLP



Ulrike Guigui
Managing Director
Deloitte Consulting LLP


Tim O'Connor
Deloitte Consulting LLP



Shaun Nabil
Managing Director
Deloitte & Touche LLP

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