The top U.S. consumer finance watchdog on Tuesday unveiled long-awaited rules that would make it easier for consumers to switch between financial services providers, a move the agency said was aimed at boosting competition.

US banks will now have to give customers access to their financial data after the top consumer watchdog finalized a long-awaited rule aimed at fueling more competition for financial products and services.

Republican chair of the US House Financial Services Committee Patrick McHenry welcomed the announcement, calling for Congress to codify the new rule's protections into law

A pair of U.S. banking trade groups filed a lawsuit on Tuesday challenging new rules issued by the Consumer Financial Protection Bureau that would make it easier for consumers to switch between financial services providers.

The rules announced on Tuesday by the Consumer Financial Protection Bureau bring the US more in line with the UK and Europe, which had previously codified rules around how financial data is to be shared.