The Consumer Financial Protection Bureau (CFPB) recently finalized a rule giving consumers greater rights, privacy, and security over personal financial data.
Under the new rule, financial institutions, credit card issuers, and other financial providers must release personal financial data and transfer it to another provider at a consumer’s request and must do so for free.
The rule was created to address market concentration that limits consumer choice regarding financial products and services.
Consumers now will have access to and can share data associated with bank accounts, credit cards, mobile wallets, payment apps, and other financial products, making it easier to switch banks or providers.
“Too many Americans are stuck in financial products with lousy rates and service,” CFPB Director Rohit Chopra said. “Today’s action will give people more power to get better rates and service on bank accounts, credit cards, and more.”
The rule also requires that personal financial data can only be used for the purpose the consumer requested.
Third parties cannot use consumer data for purposes that benefit themselves.
The rule will be implemented in phases between April 1, 2026, and April 1, 2030, based on provider size. Larger institutions will be subject to the rule sooner than smaller ones.