Biden White House supports US open banking regulation

President Joe Biden is urging the Office of Consumer Financial Protection (CFPB) to promote the adoption of rules that would give banking customers the right to transfer their data from one bank to another.

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The impetus from the White House – part of a broader executive mandate facing competition in a variety of industries – encourages the CFPB to continue its current trying to get rules under section 1033 of the Dodd-Frank Act.

While the Dodd-Frank operation became law in 2010, the bureau delayed implementing the open banking regulation under it.

In the absence of regulations for open banks under Section 1033, private sector entities have I dared to to fill the gap.

An open banking regulation issued by the CFPB will make it easier for consumers to transfer their banking data and simplify the process of switching banks. This could possibly help

Neobank
select established customers and persuade potential users to designate them as capital banks. Neobanks would then earn higher value per customer and higher deposit totals.

Convenient data transfer will benefit both the disputed and the established banks, allowing them to share their data with fintechs. Bank players could then market seamless integration with fintechs to enhance the customer experience to attract prospects and deepen existing customer relationships.

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