On January 8, the CFPB issued an order recognizing a company as a standard-setting body under its Personal Financial Data Rights rule, marking the first such recognition since the rule’s October 2024 release. The rule mandates that financial institutions, credit card issuers, and other financial providers allow consumers to transfer their personal financial data to another provider, at no cost, upon the consumer’s request. The company, which operates in the U.S. and Canada and comprises over 200 member organizations, aims to develop secure, interoperable standards for consumer and business access to financial records. The CFPB’s approval of the company’s application, received in September 2024 and opened for public comment, is contingent on several conditions, including a prohibition on “pay-to-play” practices and other conflicts of interest, and requirements to report on the market adoption of the company’s standards and to make freely available to the public any consensus standards adopted. The CFPB’s recognition of the company is valid for five years, during which the organization must adhere to these conditions to promote open banking.
