Unlocking Consumer Bank Data Stokes Chopra’s ‘Underworld’ Fears

Consumers who let budgeting apps or payment platforms access their banking data shouldn’t feel as “powerless” about how that information is used if a pending regulation works as planned, said the head of the Consumer Financial Protection Bureau.

The bureau is working to finish a long-awaited rule that would make it easier for people to share information about their bank accounts and other sensitive data that financial institutions store and protect. Opening up this data to online financial tools promises to boost competition, though it also raises risks that people’s information could be misused.

“I do worry that there’s a ...