Authored by Morgan Sweeney via The Center Square,
A forthcoming federal rule on open banking may allow banks to charge new fees for access to consumer data, a move critics say would harm consumers and runs counter to other parts of President Donald Trump's agenda.
Open banking allows consumers to authorize banks and other financial institutions to securely share their financial data electronically with third-party providers.
PNC Bank building in Pittsburgh, PA (Photo: Grace David / The Center Square)Why now?
The White House was reviewing the anticipated rule from the Consumer Financial Protection Bureau as of last week, according to reporting by Bloomberg Law. The rule would help shape the federal framework for open banking in the U.S., building on a broad provision contained within the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.
Dodd-Frank was passed to enhance transparency and accountability and strengthen consumer protections in the financial industry after the economic crisis of 2008. The law is just under 850 pages long, and Section 1033 - which provides the legal basis for the open banking ecosystem that has evolved in the U.S. - was not one of its central provisions. Section 1033 is about one page long and it ensures that Americans have the legal right to access their own financial data upon request. Financial institut
