Banks must now share customer financial data with other apps, on demand

The US consumer protection agency has issued a new rule requiring banks and other financial companies to share customer financial data with other apps and services, if the customer asks. This means customers can more easily switch banks, manage their money with third-party tools, or apply for loans using their full financial history.

For decades, banks have held customer financial data hostage. If you wanted to switch banks or use a new budgeting app, you had to manually transfer information or give a third party your login details. This rule forces banks to build secure connections for data sharing. It means new financial services can compete on features, not just on who has your data.