The new rules by the U.S. Consumer Financial Protection Bureau (CFPB) are designed to empower consumers, allowing them to control and share their own financial data when seeking services.
Director Rohit Chopra emphasized that the rules aim to enhance consumer privacy, stating, 'A company that ingests a consumer's data can use it for the product or service requested, but not for unrelated purposes the consumer doesn't want.'
These regulations, a culmination of years of effort, will enable consumers to transfer data between banks easily and borrow more effectively, enhancing competition in the market.
The American Fintech Council criticized the rules for being too restrictive, while the banking lobby warned that they could compromise consumer data security and exceed the CFPB's authority.
#consumer-financial-protection-bureau #open-banking #consumer-data-security #financial-technology #banking-regulations
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