CFPB Finalizes Open Banking (Section 1033) Rule

On October 22nd, the Consumer Financial Protection Bureau ("CFPB") issued its final open banking rule, which implements section 1033 of the Dodd Frank Act ("Final Rule"). The Final Rule requires data providers, which includes providers of consumer asset accounts and credit cards, among others, to make certain financial data available in electronic form to consumers and to third parties who are authorized by consumers.¹ The CFPB contends the Final Rule moves the United States towards an "open banking system" and seeks to make it easier for consumers to switch between providers. The CFPB anticipates the Final Rule will prompt competition, consumer choice, lower loan prices, and improved customer service.² Under the Final Rule, consumers will now be able to access and share data from their bank accounts, credit cards, mobile wallets, and certain payment apps with third parties.