The?Consumer Financial Protection Bureau's?recent rulemaking on open banking is a big win for consumers seeking greater control over their financial data. Hats off to Jason Rosen for his role in this ruling, and to the entire Prism Data team for their years of advocating for more transparent and accessible banking practices and promoting cash flow underwriting to to foster fair credit opportunities.
?? Open banking is officially the law of the land! ?? With today’s historic rulemaking, the Consumer Financial Protection Bureau guarantees consumers foundational rights to access and control their own financial data. This will make it easier for consumers to switch banks if they can get better service elsewhere, enable new convenient ways to pay for goods and services, and–importantly–provide consumers the ability to demonstrate their creditworthiness beyond traditional credit reports and scores (via cash flow underwriting platforms like Prism Data). I’m grateful for the many public servants, consumer advocates, academics, and industry stakeholders who have worked for years to reach this point and afford these new essential rights to consumers. On a personal level, I’m proud to have contributed to the rulemaking process formally as a small business representative on the SBREFA panel for this rule and as a member of the CFPB’s Consumer Advisory Board. So what’s next? Today’s rule starts a years-long transition to open banking, where new technical standards will be established, new policies and procedures will be put in place, and new products and capabilities will be developed based on consumer data access. Our team has spent nearly a decade advocating and preparing for this moment. Now that it’s here, we’re excited to help guide our partners into this new era.