1033 in Small Business Banking: Dig In or Go on the Offensive?

The Consumer Financial Protection Bureau’s finalization of Section 1033 marks a watershed moment for open banking in the United States, requiring financial institutions to give consumers unprecedented control over their financial data through new digital interfaces and enable them to share access with authorized third parties. While the regulation focuses on consumer accounts, its impact is likely to ripple far beyond. Though business accounts are explicitly excluded from 1033 requirements, forward-thinking institutions have an opportunity to leverage this mandated investment in consumer-facing capabilities to enhance business banking platforms. 

The reality is that business owners are already operating in an “open banking” environment, regularly sharing data with third-party services for accounting, enterprise resource planning, payroll, expense management platforms, and other daily operations. Yet Javelin data shows they lack confidence in their bank’s ability to help them manage these connections effectively. Banks can bridge this gap by extending 1033-driven capabilities to their business customers, potentially transforming their role from service provider to essential business partner. This report includes recommendations specific to business banking for creating robust data-sharing controls that can strengthen customer relationships and put banks on the offensive in an increasingly open financial ecosystem.