CFPB Relaunches Open Banking Rulemaking to Expand Consumer Data Control #
The U.S. Consumer Financial Protection Bureau (CFPB) has restarted its effort to finalize open banking rules, requiring financial institutions to give customers greater control over their own data. The initiative, first proposed in 2020 but stalled in recent years, seeks to enable consumers to securely share account information with third-party fintech apps for services like budgeting, lending, and payments
CFPB officials argue the rules will promote competition and innovation, allowing new entrants to challenge incumbents while giving consumers more choice. The framework would ensure banks provide secure, standardized access to transaction data once authorized by the customer, addressing long-standing complaints about screen scraping and fragmented APIs
Industry reaction is mixed: fintech advocates say the changes will lower barriers and fuel growth, while banks caution that compliance could bring costly technology upgrades and raise risks around privacy and cybersecurity. The proposal will undergo consultation and public feedback before formal rulemaking moves forward.