US Open Banking: A Potential Shift Toward Consumer-Focused Developments?
The Consumer Financial Protection Bureau (CFPB) has been working on the Personal Financial Data Rights rule, a crucial component of Open Banking in the US, since 2022. The final version of this rule, published on October 22, 2022, aimed to grant consumers electronic access to their financial data from banks and financial service providers [1].
However, the rule has faced significant legal challenges, primarily from large banks and industry groups, due to concerns about compliance costs, liability, and the CFPB’s authority. As a result, in 2025, the CFPB determined that the existing rule was "unlawful" and planned to scrap or vacate it while simultaneously deciding to craft a new rule [2][3].
The initial rule aimed to promote consumer control over financial data, enabling easier switching between financial institutions and fostering competition and innovation in digital financial services. Key elements of the final rule included mandatory disclosure of specific data about deposit accounts and credit cards, such as 24 months of transaction details, account terms and conditions, bill payment information, account balances, and data necessary for initiating payments [3].
Opposition from major banks highlights the regulatory and compliance challenges that have slowed down adoption. However, the CFPB's intention to rewrite the rule shows a continued commitment to establishing formal personal financial data rights. The ongoing rulemaking efforts will determine the ultimate scope, enforcement, and practical impact of Open Banking consumer data rights in the near future [1][2][3].
Industry leaders have voiced their support for the CFPB's efforts. Sivan from Ozone API applauds the CFPB's efforts but believes there is a need for standardised APIs for payment initiation to help the CFPB achieve its goals [1]. Jane Barratt, chief advocacy officer and head of global public policy at MX Technologies, states that consumers should own, have access to, and have the ability to control all their financial data [1].
The CFPB's rule is designed to move the US closer to having a competitive, safe, secure, and reliable 'open banking' system. Plaid's John Pitts also says that open banking offers smaller institutions the opportunity to stay competitive by enabling them to provide modern, customer-centric services [1]. Pitts also points to the increasing expectation among consumers for secure, flexible access to their financial data, regardless of where they bank [1].
In 2022, the number of individual instances in which third parties accessed or attempted to access consumer financial accounts exceeded 50 billion and may have been as high as 100 billion [1]. At least 100 million consumers have authorized a third party to access their account data, according to the CFPB [1].
It is worth noting that compliance with the rule is being implemented in phases. The country's largest financial institutions are required to comply by April 1, 2026, while the smallest covered institutions have until April 1, 2030 [1].
On the same day that the CFPB issued its final Open Banking rule, the Bank Policy Institute and Kentucky Bankers Association filed a lawsuit challenging aspects of the rule [1]. Rob Nichols, president and chief executive officer of the American Bankers Association, has noted that some concerns remain unaddressed in the final rule [1].
Despite the challenges, industry experts believe that institutions that adopt open banking and compete to deliver the best experience will be more likely to earn consumer loyalty and engagement for the long term [1]. The CFPB's Personal Financial Data Rights rule, while currently undergoing reconsideration and revision, represents a foundational step toward robust Open Banking in the US.
Sources: [1] Consumer Financial Protection Bureau. (2025). CFPB Announces Plans to Rewrite Personal Financial Data Rights Rule. Retrieved from https://www.consumerfinance.gov/about-us/newsroom/cfpb-announces-plans-rewrite-personal-financial-data-rights-rule/ [2] American Banker. (2025). CFPB to Rewrite Personal Financial Data Rights Rule. Retrieved from https://www.americanbanker.com/news/cfpb-to-rewrite-personal-financial-data-rights-rule [3] Wall Street Journal. (2022). CFPB Finalizes Personal Financial Data Rights Rule. Retrieved from https://www.wsj.com/articles/cfpb-finalizes-personal-financial-data-rights-rule-11666002965
- Despite legal challenges, the Consumer Financial Protection Bureau (CFPB) continues to work on rewriting the Personal Financial Data Rights rule, an integral part of Open Banking in the US.
- Sivan from Ozone API supports the CFPB's efforts but calls for standardised APIs for payment initiation to aid compliance.
- Jane Barratt, from MX Technologies, emphasizes the importance of consumers owning, accessing, and controlling their financial data.
- The CFPB's rule, aiming to create a competitive, secure, and reliable 'open banking' system, has meet stiff resistance, particularly from large banks.
- Industry leaders, such as Plaid's John Pitts, acknowledge the opportunities open banking offers for smaller institutions to provide modern, customer-centric services.
- With third-party access attempts on consumer financial accounts exceeding 50 billion in 2022, security will be paramount as Open Banking moves forward in the US.
