Fintech startups rely on financial data to provide services including digital banking, mobile payments, and investment platforms. However, many banks hesitate to share account data with these companies, viewing them as competitors. Regulators in the United States and Europe are working on new policies to resolve this issue, but their approaches differ. In the U.S., the Consumer Financial Protection Bureau is implementing Section 1033 of the Dodd-Frank Act, granting consumers the right to access their financial data. Meanwhile, Europe is advancing the Financial Data Access Regulation (FIDA), which seeks to expand access to a wider range of financial information, including mortgages and insurance.
While fintech firms and some innovative incumbents support these initiatives, traditional financial institutions express concern over losing clients and question the overall benefits. In Europe, debates also focus on the involvement of large tech companies including Google and Apple. Regulators aim to limit their role, fearing their influence over data could affect market competition and consumer behavior. The European Parliament and several financial institutions support their exclusion from FIDA. Although governments remain divided, there is growing agreement on imposing stricter oversight on tech firms. These developments set the stage for prolonged negotiations that could reshape the future of financial data use.
