CFPB to Address Banks’ Liability Worries in Open Banking Rule

The Consumer Financial Protection Bureau will provide guidelines for determining which companies are responsible for data breaches in an open banking proposal slated to be released this fall, the agency’s director said.

The CFPB will consider liability concerns banks have raised as it works to complete a proposal for allowing consumers to share their personal financial information with fintechs and other third-party businesses, Rohit Chopra said at a Wednesday House Financial Services Committee hearing.

The rule, required by Section 1033 of the 2010 Dodd-Frank Act, will require banks and other financial companies to share customer data with third parties at ...