The CFPB's new rule simplifies switching banks by allowing users to authorize third parties to access their financial data, making it easier to compare options and find better deals.
Under the new rule, you can authorize a third party to request your account data from your bank. The bank has to provide this data, facilitating an easier transition between services.
Switching costs, the barriers preventing you from leaving a service, have historically been high. The CFPB rule aims to lower these by allowing data sharing between banks and services.
Companies have leveraged legal mechanisms to create 'switching costs' that keep customers locked in, making the new CFPB rule crucial for empowering consumers to easily change banks.
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