‘Open banking’ rules for consumer data unveiled by US watchdog

The top U.S. watchdog agency for consumer financial protection on Tuesday unveiled long-awaited rules intended to drive a shift toward open banking and spur competition, allowing consumers to control and share their own data when shopping for services.

The new rules also aim to govern relations between the burgeoning world of financial technology companies that offer consumer apps for an expanding array of services and the sometimes competing interests of traditional banks that can be hesitant to grant access to their customers’ accounts and data.

U.S. Consumer Financial Protection Bureau Director Rohit Chopra compared the transition to the rules that now allow mobile phone users to switch providers while keeping the same number, and said the coming change should help bring U.S. payments systems more in line with advances in other developed countries.

He also said the rule incorporates strong privacy protections and consumer choices.

 

continue reading »