The Consumer Financial Protection Bureau’s (CFPB) proposed open banking rule, mandated by the 2010 Dodd-Frank Act, continues to generate controversy. The two main fault lines being whether banks can charge fintech fees for accessing customer data and manage risk by banks in complying with CFPB and prudential regulators’ guidelines. While banks argue for the option to impose fees to recover costs, fintechs claim such fees would stifle competition and innovation. Groups with invested interest also continue to express differing opinions on issues like screen scraping and restrictions on customer data usage for advertising and product development.
Banks, Fintechs Battle Over Customer Data in Open Banking Plan
