“At the recent Money 20/20 event, Rohit Chopra, Director of the US Consumer Financial Protection Bureau (CFPB) made a speech discussing the US’s aim to finalise its own set of open banking rules by 2024. He stated that “as open banking continues to open doors for innovation within the financial services ecosystem, a consistent set of regulations is needed worldwide”
The introduction of regulation by the US, signals a clear step towards making open banking generally available in the market, enabling greater competition in America and further afield. It will also support innovation and give consumers access to the vast benefits that open banking offers. These include having greater control over financial data and access to a more secure, efficient and cost-effective payment method as an alternative to credit cards.
Chopra also expressed his desire to move away from an industry dominated by established firms and towards a decentralised market. This is the right direction for the market and with FedNow services, open banking has real potential to unlock opportunities for underserved citizens and less competitive markets.