CFPB Proposes Personal Financial Data Rights Rule to Accelerate Shift to Open Banking

For several months, Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra has reiterated that the agency will issue a proposed rule to accelerate a shift toward Open Banking, promote competition, and further protect consumer data rights under Section 1033 of the Dodd-Frank Act. 

“A key priority for the CFPB is to help accelerate the shift to open banking and payments in our increasingly digital world. Over time, this can help people get paid faster, access more attractive rates on deposits and loans, switch more easily, avoid intrusive surveillance, and minimize the consequences of inaccurate credit reporting,” explained Chopra during a conference in September. 

This statement comes after President Biden’s executive order in July of 2021 that laid the foundation for Open Banking and Director Chopra’s pre-rule guidance in the summer of 2022. 

Today, the CFPB officially proposed the new Personal Financial Data Rights Rule. We’ve summarized the new ruling, why it’s important, and its impacts on the Open Banking movement. 

‍