Expert Insights: Reuben Piryatinsky on Open Banking in the U.S. and Section 1033

In spite of the renewed uncertainty around Section 1033’s future, U.S. banks know that regulated Open Banking is coming — in one form or another. The CFPB’s proposed rule may now be under review, but the broader direction of travel remains clear: secure, standardized API access to consumer financial data.

Earlier this month, before this latest news broke, Reuben Piryatinsky, CEO at Altitude Consulting, joined Raidiam’s Head of Strategic Business Development, David Oppenheim, to explore the big questions U.S. banks are facing: How do you prepare for Section 1033 compliance? What challenges will come with regulated Open Banking? And most importantly, how do you go beyond compliance to unlock long-term value?

Watch the full conversation to learn more about preparing for Open Banking in the U.S. — and how to unlock long-term value as the regulatory landscape continues to evolve.

Key challenges U.S. banks face with Section 1033 compliance

David distilled the global insights into three major challenges that U.S. banks will face as they prepare for Section 1033:

1. Standardizing and exposing APIs: While many institutions already surface some data internally or for commercial partners, they’ll now need to ensure it’s available in a compliant, regulated format for consumer-authorized third-party access.
2. Third-party connectivity: Banks must securely manage connections to fintechs, which is crucial as the number of connections scales.
3. Operationalizing third-party oversight: Compliance with Section 1033 includes stringent requirements for Know Your Business (KYB) processes, bilateral agreements, and the ongoing management of relationships. This is a major shift for institutions unused to operating in an Open Banking ecosystem.

Most banks are still in ‘wait and see’ mode

Reuben noted that, despite looming deadlines, most U.S. banks — particularly smaller institutions — are still taking a cautious approach. Larger, more digitally mature second wave banks are pushing ahead, especially those with existing API programs.

But the real challenge lies in the organizational shift: Open Banking isn’t just a tech problem. It requires alignment across compliance, operations, IT, and strategic leadership to make it a success.

Mindset shift: From regulatory burden to business opportunity

Section 1033 sets clear boundaries on how personal financial data can be utilized, particularly in areas like cross-selling and data-driven marketing from API access, which are explicitly restricted. Additionally, monetizing access to consumer data is also prohibited under the regulation. However, as Reuben pointed out, many forward-looking institutions are already exploring innovative use cases beyond the mandate – particularly in business banking, where more flexibility exists.

Premium APIs, enhanced services, and commercial applications of business data could offer banks a way to justify their investments and build future-facing capabilities.

Lessons from Brazil and the UK: Best practices for Open Banking

Raidiam’s experience enabling Open Banking ecosystems in the UK and Brazil points to the value of tested frameworks. As David put it, “There’s a tried and trusted method to get the API architecture right — one that doesn’t overburden your technical teams and still keeps consumers safe.”

What’s more, building scalable infrastructure and clear trust frameworks early on can reduce risk — including the inevitable cybersecurity concerns. In an API-first world, every bank must be ready for the operational and reputational consequences of a breach.

What’s next for Open Banking in North America?

While the future of Section 1033 is being debated, the broader direction for Open Banking in the U.S. remains clear: secure, API-based consumer data access is coming — and banks need to be ready. The institutions that thrive won’t just meet compliance obligations. They’ll build trust, deliver value through secure data-sharing, and lay the foundation for interoperable ecosystems that go beyond banking.

At Raidiam, we’ve helped shape data-sharing ecosystems around the world — and we’re ready to bring that experience to North American partners navigating what’s next.  

Want to talk Section 1033 planning or Open Banking readiness? Get in touch with us today and learn how we’re helping banks turn regulation into opportunity in the U.S. and beyond.