The Consumer Financial Protection will soon seek comments for an open banking rule with plans to finalize the rule next year.
CFPB Director Rohit Chopra provided the update in a blog post. The bureau is required by a section of the Dodd-Frank Act to finalize the rule.
The CFPB aims to use a new personal data rights rule to shift to open banking by removing obstacles for switching banks, jumpstarting competition and protecting financial privacy, the blog said.
“Control of the open banking system by [the market’s largest players] threatens competition and the consumer’s control of their own financial affairs,” Chopra said in the blog.
The CFPB “will pay close attention to any attempts to limit consumers’ exercise of their data rights, particularly where such attempts proceed from coordinated efforts by dominant firms,” he added.