On July 29, 2022, Jeremy Grant was quoted in Bloomberg Law on the Consumer Financial Protection Bureau’s (CFPB) plan to finish a long-awaited rule that would make it easier for people to share information about their bank accounts and other sensitive data that financial institutions store and protect. According to the article, opening up this data to online financial tools promises to boost competition, though it also raises risks that people’s information could be misused.
For consumers to get the most out of a free-flowing information environment, they’ll need a better handle on how their financial data is used and what they’re agreeing to when a company asks permission to see their data, CFPB Director Rohit Chopra said. The bureau is developing a regulatory framework that would allow consumers to have more control, and more choice, without creating what Chopra called “an underworld” where companies try to monetize access to financial data.
The CFPB this fall is expected give the first glimpse of its rule to let people safely share access to sensitive financial information, in part by using a common digital infrastructure. “That is the future,” said Grant. “Rather than sharing a credential, I can log into my bank account and tell my bank to let a third-party app access certain data. It empowers consumers to have more control over data in a way that’s more secure.”
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