- The CFPB has finalized a rule promoting a shift toward open and decentralized banking by requiring depository and nondepository entities to make certain data relating to consumers' transactions and accounts available to consumers and authorized third parties.
- The Personal Financial Data Rights final rule (Final Rule) requires financial institutions, credit card issuers, and other providers to unlock and transfer a consumer's personal financial data to another provider at the consumer's request, free of charge. The rule also includes privacy protections to prevent third parties from misusing consumer data and to discourage "screen scraping," where third parties use consumer account information to access data through online banking portals.
- We previously covered the CFPB's release of the proposed rule and request for public comment, as well as its final rule establishing a process for recognizing open banking standards and standard-setting bodies.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
