CFPB Open Banking Rule 1033
United States
2024
Consumer Protection
Overview
The Consumer Financial Protection Bureau (CFPB) finalized the Open Banking Rule under Section 1033 of the Dodd-Frank Act in 2024. The rule establishes a federal framework for consumer data access and sharing in financial services. It requires financial institutions to provide consumers and authorized third parties with secure, consent-driven access to account information, enabling competition, innovation, and consumer choice.br>The rule applies to banks, credit unions, card issuers, digital wallets, payment apps, data aggregators, and fintechs operating in the U.S.
Key Obligations
- Provide secure APIs for consumer-authorized data access
- Ensure explicit consumer consent for data sharing
- Prohibit data hoarding and discriminatory practices that limit portability
- Allow consumers to easily switch providers and share financial data
- Ensure data is accurate, portable, and provided in real time
- Comply with privacy, data protection, and cybersecurity standards
- Maintain records of data access and consent for compliance and audits
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