Rohit Chopra Discusses Personal Financial Data Rights Rule at DC Fintech Week
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Rohit Chopra, director of the Consumer Financial Protection Bureau, will speak Wednesday at DC Fintech Week in Washington, D.C.
The bureau recently finalized its personal financial data rights rule, a significant measure aimed at boosting competition, protecting privacy, and giving consumers more choice in financial services.
The rule mandates that financial services firms must unlock an individual’s personal financial data and transfer it for free to another provider upon the customer’s request. This applies to data related to various financial products such as bank accounts, credit cards, payment apps, and mobile wallets. The goal is to enable customers to comparison shop more easily for better rates on deposits or credit.
In his prepared remarks at the Federal Reserve Bank of Philadelphia, Chopra emphasized the importance of allowing consumers to permission their personal financial data. He highlighted how this initiative would make it easier for people to sign up, switch accounts, and carry their financial history with them seamlessly over time.
While the CFPB’s new rule has received mixed reviews from trade groups, with concerns around data security raised by the American Bankers Association, the Financial Technology Association has expressed support for the regulation. Members of the association, including Plaid and PayPal, believe that the rule will enhance competition, expand consumer choices, and drive innovation that benefits customers.
