CFPB to issue open banking rule in coming months

In a new blog post on the Consumer Financial Protection Bureau website, Director Rohit Chopra said the agency will issue a formal proposal in the next few months on a new personal data rights rule “to accelerate the shift to open banking.” Chopra said the rule—which would implement Section 1033 of the Dodd-Frank Act—would give consumers more control of their personal financial data, but he did not provide specifics about what would be in the proposal. The agency will seek to finalize the rule in 2024.

“Our proposal will recognize that the CFPB must resolve certain core issues because system participants are deadlocked or because existing approaches do not put consumers fully in the driver’s seat,” Chopra said. “But many of the details in open banking will be handled through standard-setting outside of the agency. Properly pursued, such standards can allow open banking to evolve as new technologies emerge, new products develop and new data security challenges arise.”