"CFPB's Proposed Rule Sparks Open Banking Competition and Accelerates Shift"

The Consumer Financial Protection Bureau (CFPB) has proposed a rule to accelerate the shift towards open banking, giving consumers control over their financial data and protecting them against misuse. The rule would require financial institutions to share data with other companies offering better products and services, allowing consumers to switch providers easily. It aims to establish norms in the market and prevent incumbents from hindering competition. The proposed rule would also ensure that consumers have access to their data free of charge, the legal right to share their data, and the ability to walk away from bad services. It includes robust protections against surveillance and misuse of data and aims to move away from risky data collection practices. The requirements would be implemented in phases, with larger providers subject to them sooner. The proposed rule is the first step in implementing personal financial data sharing standards and protections.