The U.S. Consumer Financial Protection Bureau (CFPB) has finalized a rule requiring banks, credit card issuers and many other financial firms to provide consumers with access to their personal financial data and help them transfer that data, often free of charge.

When the rule eventually goes into effect (anytime from 2026 to 2030, depending on financial firm assets and revenues, with the largest institutions having the least time to comply), it will make financial services more competitive by allowing consumers to more easily switch to different vendors. aims.

Under this “open banking” rule, covered financial firms will: “make available to the consumer, upon the consumer’s request, information about a consumer financial product or service obtained by the consumer from the covered person that is under the covered person’s control or possession, with certain exceptions.”

This data must be made available in an electronic format that can be used by consumers and authorized third parties.

rule Scheduled for publication in the Federal Register (PDF), it implements the “dormant statutory authority” of Section 1033 of the Consumer Financial Protection Act of 2010 (CFPA). It was passed as part of the Dodd-Frank reform in response to the 2007-2008 financial crisis and was also Founding of the CFPB As an observer agency in 2011.

“Too many Americans are stuck with financial products with poor rates and service,” said CFPB director Rohit Chopra. a statement. “Today’s action will give people more power to get better prices and service on their bank accounts, credit cards and more.”

The rule also outlines required privacy protections for personal financial data, stating that third parties may only use the data for the requested product or service.

“They may not secretly collect, use, or retain consumer data for their own unrelated business reasons (for example, by offering loans to consumers using consumer data they also use for targeted advertising),” the CFPB said. he said.

The rule prohibits data providers from making consumer data available to third parties through screen scraping and requires businesses to delete consumer data when a person revokes access.

Mike Litt, consumer campaign director at the US Public Interest Research Group, said: a statement“The promise of open banking is one step closer to being realized. This rule gives consumers more control over their own data. Consumers who remain loyal to their banks will be allowed to transfer their transaction history to new institutions, making it easier for them to switch to new institutions.”

“Enabling the secure transfer or sharing of financial data will encourage financial companies to compete for customers by providing better interest rates and customer service.

“Additionally, access to transaction histories can lead to more personalized offers that consumers may not otherwise qualify for.” ®