Who is Dodd Frank, and why is he messing with my financial data?
Last Friday, President Trump promised to roll back Dodd-Frank legislation, which was put in place to protect consumers from the financial wrongdoing that led to the Great Recession of 2008. His administration believes this rollback would loosen restrictions on banks allowing them to lend to more businesses, improving the economy.
What are the critics saying?
First, risky lending was a major cause of the Great Recession. The Dodd-Frank bill was specifically created to put big banks and financial advisors back in line.
Second, data. Specifically, your data. Part of the bill (Sec. 1033) ensures you have access to your own financial data. Seems pretty fair, no?
Why should you care?
Right now, you probably have one (or six) app(s) connected to your bank. You love them because they make your life super easy. (Think Venmo, Betterment, Acorns, Digit, etc.) If “The Dodd” gets a makeover, these apps may have to kiss their access to financial data goodbye. No data could mean no apps. No apps means you have to go back to splitting your tapas bill in cash – ugh.
Basically if you want to keep your data yours, and keep your apps, you should care.