The news: Last week, the Consumer Financial Protection Bureau (CFPB) released the final open banking rule, which requires financial institutions (FIs), credit card issuers, and payment apps like Venmo and Apple Pay to transfer consumer financial data to other providers for free on request.
Multiple banking trade groups have already launched a joint legal battle opposing it.
What happened: The Bank Policy Institute, Kentucky Bankers Association, and Forcht Bank filed a joint lawsuit in Kentucky on the same day the final rule was published. The group alleged the CFPB overstepped its authority, and that it’s putting the banking industry at risk, per Banking Dive