Data Transparency in the Age of Cyber and Privacy Risk

Financial institutions are making progress on privacy transparency, with most consumers reporting clearer explanations of data collection and third party sharing. Yet this progress has raised expectations: Consumers now view plain language, easily accessible disclosures as standard, and inconsistencies across digital channels—particularly weaker online banking experiences—are beginning to erode confidence. As cybersecurity communication strengthens within mobile apps but lags behind on browser platforms, the resulting imbalance contributes to declining perceptions of institutions’ cybersecurity engagement. 

Emerging regulations, especially CFPB Section 1033, will accelerate the shift from static privacy notices to dynamic, in app transparency tools that emphasize consumer control, data portability, and clear explanations of data sharing relationships. Requirements for standardized, real time data access mean disclosures must become more granular, actionable, and consistent across platforms. Meanwhile, privacy enhancing technologies are poised to become industry standard, helping mitigate third party risk and support secure open banking ecosystems. Institutions that embrace these changes—by giving consumers meaningful control, simplifying opt outs, and personalizing guidance—will be better positioned to strengthen trust, loyalty, and long term digital engagement. 

Key questions discussed in this report:

• Why is privacy a predominant indicator of long-term trust among consumers with their primary FIs?
• How does privacy and cybersecurity transparency play into the ongoing discussions around privacy?
• Why should FIs brace now for CFPB 1033 ruling compliance in 2026?  

Companies Mentioned:

Ally Bank, Bank of America, BMO, Capital One, CFPB, Chase Bank, Citibank, Citizens Bank, Consumer Financial Protection Bureau, Fifth Third Bank, First Citizens Bank, Huntington National Bank, KeyBank, M&T Bank Navy Federal Credit Union, OCC, Office of the Comptroller of the Currency, PNC Bank, Regions Bank, Republic Bank, Santander Bank, TD Bank, Truist Bank, U.S. Bank, USAA Bank, Wells Fargo, Zions Bancorporation