CFPB’s proposed data rules would improve security, privacy and competition

The article argues that the CFPB’s proposed open banking rules would give consumers control of their financial data, weaken the data broker economy, and improve security by applying the decoupling principle and standardized APIs. By reducing centralized data stores, increasing transparency, and enforcing data minimization and traceability, the rules aim to lower breach risks and foster competition, diminishing the power of entrenched credit bureaus and data aggregators. The authors support finalizing the rule and call for broader regulatory and architectural changes to further strengthen privacy and security.