👁 USA 🇺🇸: How to move forward in open banking?

👁 USA 🇺🇸: How to move forward in open banking?

The Consumer Financial Protection Bureau (CFPB) has released a final set of rules for financial institutions to follow regarding open banking. These rules could reshape how goods and services are paid for, as well as streamline the credit card application process in the future.

🔄 Reminder: Open banking allows consumers to share information about their accounts and other financial data (for example, a lender can see a person's monthly savings). This increases competition among financial institutions and gives fintechs more opportunities to attract customers.

🔄 Data collected through open banking can be especially valuable for fintechs in developing credit scores. For users, this means greater ease and speed in obtaining a virtual credit card or replacing an existing one.

🔄 A key benefit is the ability to make payments directly from bank accounts, enabling small business owners to save on interbank fees from credit card networks.

🔄 To protect users from targeted advertising, the new rules prohibit the sale of personal data to third parties. Users must provide explicit consent before sharing any information with a bank and can revoke this consent at any time.

🔄 The technical standard for developing APIs is the FDX API by Financial Data Exchange.

👉 While the US is a leader in many areas, it still lags in open banking. According to the CFPB, advancing in this area — despite the skepticism of many conservative Americans — will require strong regulatory support.

#news #USA #global

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