CFPB Reinvigorates 'Open Banking' Reform Effort

The U.S. Consumer Financial Protection Bureau is revisiting its 'open banking' regulations to enhance consumer data control amid tensions between banks and fintech firms. These regulations, part of the 2010 Dodd-Frank law, faced legal challenges from the banking industry under the Biden administration.

The U.S. Consumer Financial Protection Bureau (CFPB) has reignited discussions around its 'open banking' regulations, aiming to give consumers more control over their personal data shared between banks and the growing financial technology sector.

Facing industry disputes over control measures, the CFPB solicited public input on the best approach to implement these consumer data rules, which are mandated by the 2010 Dodd-Frank financial reform law. The law intends to ensure that consumers can access their financial data, such as account details and transaction history, on request.

While these regulations were previously finalized under the Biden administration, they drew legal opposition from the banking industry, which had criticized the previous approach. The latest effort seeks to balance industry concerns with consumer rights.

(With inputs from agencies.)