InfoBytes Blog
Chopra says open-banking rule is coming
On June 12, CFPB Director Rohit Chopra announced that the agency is currently working to propose a rule that will assist consumers in making the switch to open banking. Chopra explained how consumers are “deadlocked” when it comes to control of their personal financial data, and consequentially cannot switch banks or apply for loans. Considering this issue, Chopra declared, “The CFPB is working to accelerate the shift to open banking through a new personal data rights rule intended to break down these obstacles, jumpstart competition, and protect financial data.” Chopra also discussed the topic of maintaining open market principles and stressed that the Bureau does not intend to micromanage this space but rather release consumers from a situation preventing them from participating in open banking. He ensured that open banking will generally be managed through standard-setting outside of the agency, and that the Bureau intends to safeguard fair standards at play. Chopra also shared his concerns about the power of large players in the market, warning that standard-setting organizations must consider consumers and smaller actors’ interests as well. The Bureau’s new rule will be open for comments in the coming months and is expected to finalize in 2024.