CFPB's Open Banking Initiative Empowers Consumers and Protects Data

The Consumer Financial Protection Bureau (CFPB) has released a proposal aimed at giving consumers more control over their financial data and making it easier for them to switch banks. The proposal would require financial firms to share consumer data with other businesses offering competing products, prevent them from charging for it, and prohibit the use of personal data for targeted advertising. It also seeks to standardize the patchwork data-sharing system between traditional banks and fintech startups. The proposal faces feedback and lobbying before approval, but both banks and fintechs have found aspects to appreciate in the proposed rule.