Fintech CEOs call on Trump to block banks from imposing ‘account access’ fees

Last October, the Consumer Financial Protection Bureau (CFPB) published the Personal Financial Data Rights final rule, giving Americans the right to instruct their banks to share their financial data with third party providers.

But, under the new administration’s leadership, in May the CFPB moved to have the rule rescinded in a decision that the Financial Technology Association (FTA) described as a “handout to Wall Street banks”.

Since then, it has emerged that JP Morgan is planning to impose fees on companies wanting to access its clients’ bank account data and has gone so far as sending pricing sheets to data aggregators – the intermediaries that link banks and fintechs.

In the letter to Trump, made public by the FTA, the open banking CEOS say: “Large banks are taking aggressive action to preserve their market position by imposing exorbitant new “account access” fees that would prevent consumers from connecting their accounts to better financial products of their choice.

“This access is critical to ensuring Americans have control of their own financial lives in a digital economy.”

The move would undermine consumer choice, “which you vigorously supported during your first Administration,” says the letter, adding that if the large banks are successful, it will choke off access to the finances of consumers and businesses, effectively killing competition.

The CEOs – from the likes of Brex, Chime, Klarna, Plaid and Sofi – also argue that such a move would cripple innovation in crypto, AI and digital wallets and payments.

“We urge you to use the full power of your office and the broader Administration to prevent the largest institutions from raising new barriers to financial freedom,” they write.