Washington still hasn’t settled the rules for open banking. The Consumer Financial Protection Bureau (CFPB) sent a revised Section 1033 proposal to the White House’s Office of Information and
Washington still hasn’t settled the rules for open banking. The Consumer Financial Protection Bureau (CFPB) sent a revised Section 1033 proposal to the White House’s Office of Information and Regulatory Affairs for review on August 6, reportedly reversing the original ban on banks charging for data access.
Meanwhile, a federal court’s preliminary injunction from October 2025 blocks the CFPB from enforcing the 2024 rule.
Louise Beaumont, head of marketing, communications and design at Invela, told TheStreet Roundtable at Money20/20 in Las Vegas that the fee fight misses the real issue: who is responsible when customer data ends up in the wrong hands.
“First of all you need to understand the risk, then you need to understand the liability and where it sits,” she said. “Liability sits with the actor that caused the problem.”
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Open finance is where people and businesses “share our data in order to access hyper-personalised predictive and preemptive services,” Beaumont said.
Her example was a loan or mortgage applicant who shares their bank and credit card account data with a lender so it can see who they really are, then is “rewarded with an accurate and appropriate product or service.”
That data now moves through APIs. Beaumont said they are far safer than data scraping, the method that powered a lot of open banking before and shortly after Dodd-Frank passed.
“Don’t share your credentials,” she said.
The trouble starts after the data leaves the bank.
“The consumer can never know that everybody who’s touching their data is a good guy having a good day,” Beaumont said.
The UK, which is the most mature open finance market, shows how big that chain gets. It has 145 third-party providers (TPP) with live open banking products, another 406 agents, and potentially thousands of firms using open banking data, according to Open Banking Limited.
Liability is already a sore spot in the US. Banks covered by the rule have worried they could be held liable when things go wrong. And JPMorgan Chase has moved on fees. It signed updated contracts with Plaid, Yodlee, Morningstar and Akoya, which account for more than 95% of open banking data requests to the bank.
Beaumont says the ecosystems include thousands of banks, many intermediaries and, by her count, tens of thousands of third-party fintech providers. Managing that means knowing each participants risk profile “not as a one-off but in real time.”
When something breaks, it means making sure liability lands on the company responsible. That is the businesses Invela is building. The company says it accredits who’s in the network, monitors risk in real time and helps place liability in the right place.
In Beaumont’s view, banks should not default to carrying all the risk, nor should the consumer. The company that causes the failure pays, and that only works if everyone in the chain is being watched.
