Invela says open banking needs a liability fix before the CFPB settles the fee fight

Invela said open banking needs a clearer approach to liability before the Consumer Financial Protection Bureau resolves its dispute over fees, according to a report originally published by TheStreet. The company’s position places responsibility for losses and failures at the center of the policy debate around consumer-authorized financial data sharing.

Open banking generally refers to systems that let consumers permit banks and other financial firms to share account data with third-party providers. It can support services such as account aggregation, payment initiation and financial-management tools, but it also raises questions about data security, unauthorized activity and the handling of operational mistakes.

A liability framework would address which party is responsible when something goes wrong involving a bank, data intermediary, app provider or consumer. The question can affect how firms manage risk, design user consent processes and respond to fraud or data-access disputes.

The CFPB is the U.S. consumer-finance regulator and has played a major role in the policy discussion surrounding open banking. Invela’s call suggests that, in its view, the rules governing responsibility for harm should be settled alongside—or ahead of—debates over the fees associated with access to financial data.