Russell Vought, the acting head of the CFPB.
AFP via Getty Images
The Consumer Financial Protection Bureau is asking stakeholders for their input before it reworks an open banking rule governing access to consumer financial data. The battle between fintechs and banking incumbents intensified last month as the nation’s largest bank, JPMorgan, announced it would impose hefty fees for data access, with other banks contemplating similar moves to stave off rising competition by the fintech industry.
Just yesterday, the CFPB raised a total of 36 questions in the solicitation document it submitted to the Federal Register’s public inspection division. Under consideration, are questions as to who should have the authority to make data requests on behalf of consumers, how best to safeguard consumer data and who should cover the costs associated with data transfers to fintechs. The agency also requests guidance on a suitable price cap for fees, should they decide that banks be allowed to charge for consumer data access.
The agency’s questions around bank fees for the access and transfer of consumer financial information are expected to be formally published today in the Federal Register. The published document will set in motion a 60-day comment period during which banks, data aggregators and fintechs are invited to contribute to the discussion on the open banking rule and help revise it.
This latest filing marks the first step in the CFPB’s plan to rewrite the open banking regulations, after its motion to do so was approved last month by a federal judge.
Under the original open banking rule finalized by the Biden administration in October 2024 and set to take effect next year, customers would’ve been able to access and share financial information tied to their bank accounts with fintechs and other third parties without incurring a fee.
Since the early days of the fintech industry, startups such as Chime, Stripe and Robinhood have required access to consumers’ bank data for tasks like transferring money and wealth management services. Data aggregators such as Plaid and MX have often acted as an intermediary that charges fintechs for bank data access.
Banking lobbying groups immediately sued to strike down the Biden administration’s October 2024 rule. Soon after, the Financial Technology Association (FTA), a DC-based trade organization, was granted permission to join the litigation to uphold the regulations.
The FTA, which has agreed to participate in the rulemaking process, released a statement on Thursday calling the CFPB’s request for comments “an opportunity to stand up for Americans’ rights to access innovation and control their financial data without unfair roadblocks.”