CFPB Director Chopra recently announced during Money 20/20 that the CFPB will begin the rulemaking process to “move us closer to” open banking by making on-demand consumer data sharing easier and safer, “empowering people to break up with banks,” and increasing competition and innovation in financial services. He noted that the CFPB’s approach to regulation is shifting “to create catalysts for more competition.”
The CFPB expects to propose rulemaking that would: require financial institutions to create secure methods of consumer data sharing, minimize personal financial data misuse and abuse issues, and prevent market monopolization. Director Chopra indicated that this rulemaking would make it easier for consumers to change financial services providers, such as moving a bank account, by allowing the consumer to maintain their account history at a new provider and making it easier to transition recurring payments.
The CFPB’s next step is to convene a panel of small businesses for input regarding these proposed changes. The CFPB expects to issue a report on this input in early 2023, and then issue a proposed rule later that year. By 2024, the CFPB hopes to finalize the rule and begin implementation.