Overview

• The Consumer Financial Protection Bureau's (CFPB) open banking rule requires banks to share consumer financial data with third parties, promoting competition and innovation in payment methods.
• Critics argue the rule lacks clarity and imposes burdens on banks without adequately addressing security concerns, potentially complicating its implementation.
• The rule grants consumers more control over their data, allowing them to know what data is collected and shared, and to revoke access at any time.
• While the rule prohibits screen scraping, it mandates secure data sharing interfaces, which could limit the practice in many scenarios.
• The regulation aims to enhance data privacy and security by applying existing standards from the Federal Trade Commission and prudential regulators.