Open banking policy fight sees big spending from traditional banks and fintechs

The lobbying meter is running hot in Washington over who gets to control your financial data. Traditional banks and fintech companies both ramped up spending last week as the Consumer Financial Protection Bureau’s revised open banking proposal made its way to the White House for review, setting up one of the most consequential regulatory battles in financial services this decade. The CFPB transmitted its revised proposal, built on Section 1033 of the Dodd-Frank Act, to the White House during the week of August 3-9. That proposal attempts to settle thorny questions about data access rights, fee structures, liability frameworks, security standards, and how much latitude third-party companies get when tapping into consumer banking data. Both sides have poured millions into lobbying efforts to shape the answer. The battle lines On one side: the banking establishment. The Bank Policy Institute, American Bankers Association, and Consumer Bankers Association are leading the charge for traditional financial institutions. Their core argument centers on security concerns, liability protections, and the ability to charge fees when third parties access customer data held on their systems. On t...