US Banks Brace for Open Banking Era of Consumer Data Sharing
- Measure impacts firms with more than $850 million in assets
- Consumers will get ‘more power to get better rates’: CFPB head
A customer uses an ATM in New York.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
US banks will now have to give customers access to their financial data after the top consumer watchdog finalized a long-awaited rule aimed at fueling more competition for financial products and services.
Under the Consumer Financial Protection Bureau’s open banking measure, consumers will be able to demand, download and transfer their highly-coveted data to another lender or financial services provider for free. The rule is aimed at making it easier for consumers to shop around for better rates and switch providers, which in turn will help lower the price of loans and improve services by boosting competition, CFPB Director Rohit Chopra said in a statement Tuesday.