US Watchdog Unveils Open Banking Rules for Consumer Data

The US Consumer Financial Protection Bureau has unveiled new "open banking" rules that give consumers greater control over their financial data. The regulations require banks and financial institutions to share customer data with authorised third parties at the customer's request.

The rules implement Section 1033 of the Dodd-Frank Act, establishing a framework for secure data sharing that has been years in the making. The regulations set standards for how data must be shared, including requirements for security, privacy and consumer consent.

The open banking rules are expected to accelerate competition in US financial services by making it easier for consumers to switch providers and for fintechs to build products that access bank-held data, similar to frameworks already established in the UK and EU.