The Consumer Financial Protection Bureau on Thursday unveiled its long-awaited open banking proposal, a rule it says will give consumers greater control over their financial data by requiring banks to share such data with third parties like fintechs.
The rule forbids financial institutions from “hoarding a person’s data,” making it easier for consumers to break up with banks that provide bad service, the CFPB said. The bureau is pursuing the new regulation under Section 1033 of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act.
