Start-ups argue that Section 1033, which is a mere 1 page in the 849 page Dodd-Frank Act, preserves their right to pull data from customers’ bank accounts.
Upstarts and banks have discussed compromise proposals, such as creating new ways to create anonymous passwords. Some banks also plan to submit comments to the CFPB on data-safety guidelines for sharing. “We know customers love sharing their data, and banks are working hard to make sure they can share their data regardless of whether there’s a law or not,” said Robert Morgan, vice president for emerging technologies at the American Bankers Association, a banking industry group. Banks and fintech companies have managed to reach some accommodations. J.P. Morgan Chase recently struck a deal with Intuit Inc., which owns the Mint.com service, to enable the bank’s customers to share data without giving up their password to Mint and other Intuit services.