US To Consult Apple And Google On User Financial Data

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Apple: The US consumer finance agency will ask big techs, including Amazon, Facebook, Apple and Google, for information about users’ financial data. The action aims to increase consumer protection and competition in the financial sector.

According to Reuters sources, the Consumer Financial Protection Bureau (CFPB) must send companies a 55-page information request about the collection, use and marketing of individuals’ financial data.

“The agency’s questions will pay special attention to what data companies are collecting, how they are collecting it and what they are using this information for,” said one of the news agency’s sources.

The request for consultation comes shortly after Rohit Chopra assumes the direction of the CFPB. Always hard on the big techs, the former Democratic Federal Trade Commission representative made his career advocating consumer rights.

In the US, the Democratic Party has made increasing competition in the financial sector one of its priorities. Embracing the “open banking” concept, politicians are demanding that financial institutions give individuals more control over their data.

Thus, banks and other companies must allow people to download data about financial history (account balances, transfers and investments). The aim is to make it easier for consumers to switch service providers.

How will the big techs collaborate?

According to Reuters sources, the big tech’s confidential information is expected to help enrich the US open banking system. However, the action may have an influence on the creation of future rules for the regulatory body.

“This move is a clear sign that this wide range of companies, which are not covered by the CFPB and collect financial data from individuals, may be subject to future regulation of open banking,” a source told the agency.