CFPB Proposes Financial Data Rights Rule to Promote Open Banking

  • The CFPB proposed a new rule to encourage a shift towards open and decentralized banking by requiring depository and nondepository entities to make available to consumers and authorized third parties certain data relating to consumers’ transactions and accounts.
  • The CFPB has stated that the proposed Personal Financial Data Rights rule is meant to give consumers meaningful control over their data no matter what financial institution they use, including the right to revoke access to their data and the right to share their data with third parties. The CFPB asserts that this control would allow consumers to switch financial institutions more easily and to get their financial data free of junk fees, among other benefits.
  • The CFPB requests public comment on the proposed rule by December 29, 2023.