TCH Asks CFPB to Define Larger Participants in Aggregation Services Market

The Clearing House has petitioned the Consumer Financial Protection Bureau (CFPB) to make new rules around aggregation services, or third-party companies dealing with peoples’ financial data, many of which aren’t looked into closely by the CFPB.

The Clearing House lays out a case that there’s a need to make sure financial data is handled “appropriately and securely” as technology has expanded.

“As banks innovate, they do so within an established regulatory framework, reinforced by strong supervision and oversight that ensures robust customer and data protection. Innovation is also taking place outside of banking,” the petition reads. “Technology-focused startups are building consumer-facing products that rely on access to financial data.”

The Clearing House says the CFPB should adopt an amendment defining “larger participants of certain consumer financial product and service markets” by adding a new section to its clarification of rules.

Additionally, The Clearing House says the CFPB should define the term “aggregation services” as being financial products and services.

PYMNTS also recently wrote that The Clearing House has named Rusiru Gunasena, a 20-year payments industry veteran, to oversee its real-time payments network.

Read more: The Clearing House Names Rusiru Gunasena to Oversee RTP

As of Aug. 2, Gunasena had joined the payments company as senior vice president for RTP product management and strategy, taking over for Steve Ledford, who is retiring.

Gunasena will be responsible for looking over RTP growth, which the company said reaches 61% of U.S. demand deposit accounts, with over 260 financial institutions on the network.

“Rusiru’s knowledge of the payments industry and experience with onboarding new financial institutions to JHA PayCenter will directly translate to helping to accelerate growth of the RTP network, providing unparalleled control and transparency to users,” said Russ Waterhouse, executive vice president, product development and strategy, The Clearing House.

Prior to this, Gunasena worked as managing director for JHA PayCenter’s payments hub at Jack Henry. There he oversaw the onboarding of over 170 banks and credit unions to the RTP network.