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Open Banking Regulation & Section 1033: Building the Framework for Data Access

Section 1033 of the Dodd-Frank Act is transforming how financial data is accessed and shared in the United States. It establishes a legal right for consumers and businesses to obtain and share their own financial information securely, setting the foundation for a more open and competitive financial ecosystem.

The rule aims to make data portability a standard feature of modern finance by giving customers greater control and choice, encouraging innovation among service providers, and improving transparency across the sector.

As implementation approaches, it marks a major step toward the same kind of Open Banking frameworks already seen in the UK and Europe.

The Regulatory Landscape

On August 22, 2025, the CFPB published an Advance Notice of Proposed Rulemaking (ANPRM) in the Federal Register, launching a new comment period that runs until October 21, 2025. The Bureau announced plans to revisit and update its 2024 Open Banking rule to make it “more suited to market realities.”

The ANPRM highlights five areas under review:

  1. Who can act on behalf of consumers – whether authorised service providers should qualify as “representatives.”

     

  2. Cost sharing – whether the current ban on fees for consumer data access should remain or be adjusted.

     

  3. Information security – whether stronger protections or limits on practices like screen scraping are needed.

     

  4. Consumer privacy – whether additional safeguards are required to prevent misuse or resale of financial data.

  5. Implementation timeline – whether phased compliance deadlines from 2026 to 2030 should be extended, given the complexity of building compliant systems.

The Bureau has indicated it may issue a new proposed rule to replace the 2024 version, while a court-ordered 90-day stay has moved the first compliance date to June 30, 2026.

Industry bodies such as the Financial Data Exchange (FDX) have been working closely with regulators to shape the technical standards that will underpin these requirements.

For financial institutions, this means updating systems, strengthening governance, and ensuring compliance structures are ready when the rule takes effect.

How obconnect Supports Compliance and Innovation

obconnect enables organisations to adapt confidently to changing regulatory expectations. Our platform is built for secure, standards-based data sharing and trusted interoperability between financial participants.

We focus on three areas that directly align with Section 1033’s goals:

  1. Regulatory Readiness
    Our solutions support compliance with CFPB requirements and emerging open banking frameworks, reducing complexity while maintaining complete transparency.

  2. Trusted Connectivity
    We help institutions establish secure identity and access protocols that validate data requests and protect customer consent throughout the sharing process.

  3. Innovation Through Standards
    By using interoperable connections and real-time data exchange, we help clients deliver new services, streamline operations, and strengthen customer relationships.
Looking Ahead

Section 1033 signals the beginning of an open data economy in U.S. finance. Once finalised, the rule will accelerate competition, collaboration, and customer choice, much like Open Banking did in the UK.

Institutions that take proactive steps now will be better positioned to meet compliance requirements and lead the next wave of digital transformation. At obconnect, we continue to work with partners across the industry to ensure that readiness and innovation go hand in hand.

Connect with obconnect

Stay ahead of Section 1033 and the next phase of Open Banking regulation.

Get in touch to learn how obconnect can help your organisation strengthen compliance, build trusted connections, and prepare for a future powered by secure data access.

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Our belief is that an open ecosystem is crucial for unlocking unprecedented opportunities and defining the future of finance.

Enabling unrestricted collaboration

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Promoting innovation

By removing barriers, we drive partnership and innovation throughout the industry. 
Pioneering the transformation in finance

We believe that an open ecosystem is the key to shaping the future of finance.

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