The Consumer Financial Protection Bureau (CFPB) has proposed the Personal Financial Data Rights rule to accelerate open banking in the U.S., providing consumers more control over their financial data and protection against misuse. The rule would activate a previously dormant 2010 provision of law, allowing the CFPB to exercise its powers to promote competition by preventing financial institutions from hoarding consumers’ data. Consumers would have the power to share data pertaining to their use of checking and prepaid accounts, credit cards, and digital wallets, with third-party fintechs and service providers, break ties with banks offering poor service, and prevent companies from misusing the personal financial data they have access to.
CFPB Proposes Rule to Jumpstart Competition and Accelerate Shift to Open Banking
