A group of fintech executives has reached out to the Trump administration, urging it to prevent banks from charging fees for accessing customer data, claiming it stifles innovation and consumer choice.
Appeal to the Trump Administration
In a recent letter to the President, the group expressed shared commitment to a dynamic and competitive US economy, stating this vision is under threat from the nation's largest banks. JPMorgan's decision to cease free access to client data and other banks considering similar fees prompted the request from industry leaders like Alex Rampell from Andreessen Horowitz and Tobi Lütke from Shopify to halt these exorbitant charges.
According to the New Open Banking Rule
The group claims that these fees hinder consumers from connecting their accounts to better financial products. Additionally, the letter underscores the importance of the open banking rule finalized under the previous administration, allowing customers to freely share bank data with fintech companies.
Response from Banking Groups
Banking groups, led by the American Bankers Association, countered the letter, alleging that fintech executives are undermining free markets and pushing for government price fixing. They assert that data access fees align with standard industry practices and express support for the Trump administration's efforts to lift regulatory restrictions for banks working with crypto firms.
Thus, the conflict between traditional banking institutions and fintech continues to escalate, reflecting the evolving financial ecosystem and the growing influence of new technologies.
