CFPB Proposes Open Banking Rule to Empower Consumers, Increase Competition

CFPB proposes rule to require financial institutions to share customer data at the customer's request. This aims to increase competition and accelerate shift to open banking.

Proposed rule would allow customers to easily switch financial providers and services based on better products, pricing. It forbids companies receiving data from misusing it.

Customers would get free access to their financial data. They'd have legal right to share data to access other services. This makes it easier to walk away from bad providers.

Protections would prevent misuse of data. Access could be revoked anytime. Risky practices like screen scraping would be moved away from.

Phased implementation starting with large providers. Exemptions for community banks and credit unions without digital customer interfaces. Comments accepted through Dec 2023.