New CFPB data rights rule will modernize U.S. banking system, Chopra says

Banks, credit card companies and other financial mainstays will be required to comply with new data privacy and retail account portability regulations under a sweeping rule issued Tuesday by the Consumer Financial Protection Bureau (CFPB).

The Personal Financial Data Rights rule is designed to modernize the U.S. consumer financial system and increase competition, by expanding banking and payment options for the public while adding better data privacy protections, the CFPB said.

In short, the new rule, on the drawing board since 2010 and the aftermath of the financial crisis, will bring U.S. banking and financial services and protections in line with those already required in other nations.