On October 22, 2024, the Consumer Financial Protection Bureau (CFPB) finalized the Personal Financial Data Rights Rule. This rule gives consumers greater control over their personal financial data, requiring financial institutions, credit card issuers, and other financial providers to freely transfer an individual’s data to another provider upon request. The reasoning is so that consumers are better equipped to switch to providers that offer better rates and services. The expected result is that it will ultimately drive competition across the financial services industry.
This development has implications for the electronic bill presentment and payment (EBPP) space. With the heightened focus on data portability, security, and consumer choice, financial institutions must adapt quickly to meet these regulatory requirements and consumer expectations. Alacriti’s EBPP solution, designed to streamline loan payment processing and enhance the customer experience, is uniquely positioned to help banks, credit unions, and businesses navigate these changes effectively.
How the CFPB Impacts Consumer Choice
The CFPB’s rule unlocks access to bank account details, credit card data, and transaction histories, so consumers can more easily transfer their personal financial data to new providers, making it easier to move on from financial institutions for greener pastures with higher interest rates on deposits or lower loan rates.
How Alacriti’s EBPP Solution Can Help FIs Respond to the New Regulation
Alacriti’s Orbipay EBPP solution is designed to help financial institutions and businesses modernize their billing and payment operations, which aligns seamlessly with the CFPB’s goals for increased transparency, consumer control, and secure data sharing.
Here’s how Alacriti’s EBPP solution can help:
1. Enhanced Customer Choice
With the CFPB’s rule pushing for greater competition, consumers will increasingly seek providers who offer convenient and transparent billing. Alacriti’s Orbipay EBPP gives businesses the tools to offer secure, real-time payment options. By providing easy, flexible ways for consumers to manage and pay bills, Alacriti’s EBPP solution directly supports the seamless data portability and choice that the new rule envisions.
2. Streamlined Data Access and Portability
The CFPB’s rule mandates that financial institutions make transaction data and bill information easily accessible to consumers. Alacriti’s EBPP platform enables secure access to billing data, which can be shared across platforms. This capability aligns with the rule’s requirement for frictionless data sharing between financial providers, ensuring that customers can move their financial history and payment details without barriers.
3. Stronger Privacy and Security Features
The new rule sets stringent privacy requirements, banning third parties from harvesting data for unrelated purposes. Alacriti’s EBPP solution places a strong emphasis on data security and compliance, ensuring that customers’ personal data is used solely for their requested transactions. The platform’s secure architecture helps businesses adhere to the CFPB’s strict guidelines, giving consumers confidence in the privacy of their financial information.
4. Improved User Experience
With consumers now empowered to move their data freely, they will expect seamless and transparent payment interactions. Alacriti’s intuitive EBPP platform offers a smooth user experience, helping financial institutions and businesses provide clear billing information, easy payment options, and personalized communications—all of which help meet the CFPB’s consumer-first mandate.
5. Efficient Handling of Payment Data
The rule introduces measures to support secure and fast payments, such as “pay-by-bank” options. Alacriti’s EBPP solution already supports secure payment processing and flexible payment methods, such as ACH, credit card, and real-time payments. These features make it easy for consumers to manage and make payments across platforms securely, aligning with the CFPB’s vision for better competition.
Preparing for the Future of Open Banking
The CFPB’s rule is part of a larger move toward an open banking system in the U.S., which is poised to accelerate over the coming years. As the rule phases in, with larger financial institutions required to comply by 2026, businesses using Alacriti’s EBPP solutions will already be positioned to offer the transparent, customer-focused services that consumers demand.
Alacriti’s Orbipay EBPP not only simplifies billing and payment processes but also offers the flexibility and data control that will become increasingly important as the financial landscape evolves. By adopting solutions like Orbipay, financial institutions, and businesses can meet new regulatory demands while also providing an enhanced customer experience.
To see Orbipay EBPP in action watch the BAI-hosted webinar, The Future of Loan Payments is Here: Live Demo.
Alacriti’s Orbipay EBPP is a customizable electronic billing and payments solution for businesses and financial institutions of all sizes. Orbipay EBPP offers convenient and flexible choices that include all the payment channels, payment methods, and payment options expected from a modern digital bill pay experience. For more information, please contact us at info@alacriti.com.
