Open Banking Firms Push Back on Bank Data Fees

A group of financial technology executives is urging President Donald Trump to step in after recent developments they say could limit consumer access to financial data. The call comes after the Consumer Financial Protection Bureau in May moved to rescind the Personal Financial Data Rights rule, which was finalized last October. That rule would have allowed Americans to instruct their banks to share account information with third-party providers.

Following the reversal, reports have emerged that JP Morgan intends to introduce fees for companies seeking access to its customers' account data, sending pricing proposals to data aggregators - intermediaries that link financial institutions with fintechs. The Financial Technology Association, representing various fintech companies, has described the move as a "handout to Wall Street banks."
In a letter made public by the FTA, executives from companies including Brex, Chime, Klarna, Plaid, and Sofi warned that the fees could prevent consumers from using better financial products and reduce competition. "Large banks are taking aggressive action to preserve their market position by imposing exorbitant new 'account access' fees," the letter said, adding that such access "is critical to ensuring Americans have control of their own financial lives in a digital economy."
The letter also argued that restricting access would stifle innovation in areas such as cryptocurrency, artificial intelligence, and digital payment systems. The CEOs urged the administration to "use the full power of your office" to prevent what they described as new barriers to financial freedom.