'Open banking' rules will put your financial data back where it belongs

The US Consumer Financial Protection Bureau (CFPB) has finalized a rule that requires banks, credit card issuers, and most other financial firms to provide consumers with access to their personal financial data - and to help them transfer it, generally at no cost. When the rule eventually takes effect – anywhere from 2026 to …

[An_Old_Dog]

"Subject to Certain Exceptions"

This law will become essentially-ineffective as financial-community lobbyists lobby for their particular items to be placed on the exceptions list.

[Ayemooth]

It never ceases to amaze me how far behind the US banking sector is, compared to other parts of the world. In the UK we've had this for several years.

[Headley_Grange]

I think it's also the case that you have to use paid-for software to complete and submit your tax return, which is free and surprisingly OK on the UK HMRC website.

[Jamie Jones]

Yeah, that's due to commercial interests and their lobbyists too: https://theconversation.com/the-irs-already-has-all-your-income-tax-data-so-why-do-americans-still-have-to-file-their-taxes-175777

[Tubz]

As if American financial companies will ever obey the law, we all know they will have dodgy backroom data stores.

[Korev]

your financial data

This is a (still just about) British website, please make headlines like this mention that it's referring to America (or wherever the article's discussing)

[BasicReality]

Not exactly sure how this benefits anyone. If I want to change banks I simply open new accounts with the new place, change my direct deposit settings and then stop using the old accounts, it's pretty easy to move the money remaining in the old accounts in several ways.

As far as transaction history, I have statements, or I can download the histories into my own software to track it.

Requiring more privacy is always a good thing, but the government never allows real privacy on financial transactions. Withdrawing money and using cash as often as you can is about the only option there.

[Spamolot]

Under modern Open Banking systems the existing incoming and outgoing arrangements are ported to the new financial provider so the consumer doesn't have to deal with cancelling and redoing debits and credits. It's seamless so it increases account portability leading to increased competition between banks to retain customers. Banks know that most customers are ignorant of better offers out there and customers are loathe to change providers; many customer don't realise that they can have multiple accounts at different banks, credit unions or fintechs.