On October 19, 2023, the Consumer Financial Protection Bureau (CFPB) announced an eagerly anticipated Notice of Proposed Rulemaking (NPRM) on Personal Financial Data Rights, promising a transformation to how financial institutions manage and distribute client-produced data.
This proposal, unique in its focus on customer-generated data, has been in the crates since November 2020, when the CFPB initially initiated the Advanced Notice of Public Rulemaking (ANPRM). The initiative gained new traction as the CFPB recently, on February 1, 2023, convened a Small Business Review Panel, also known as SBREFA, specifically for this rulemaking.
Banking trade bodies have maintained active involvement throughout the intricate process. This proposed rule signifies a shift towards a more customer-centric data model in the financial sector, providing greater control and potential innovation derived from access to personal financial data.
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