Open Banking: CFPB Faces Pressure to Protect Consumer Data

A group of U.S. crypto, fintech and retail organizations is asking the Consumer Financial Protection Bureau (CFPB) to protect consumers’ access to their financial data. They sent a joint letter warning that banks charging fees for data access could slow innovation, reports Coin Bureau. The letter stresses that Americans, not big banks, should control their own financial information.

⚡️JUST IN: CRYPTO & FINTECH GROUPS BACK OPEN BANKING

🇺🇸Industry leaders urge the CFPB to enforce the rule ensuring Americans, not big banks, own their financial data. pic.twitter.com/ruPXR9LBrc

— Coin Bureau (@coinbureau) October 21, 2025

What Is Open Banking?

Open banking allows people to share their financial data safely with trusted third-party apps. These apps include budgeting tools, payment solutions and digital wallets. Open banking makes it easier for consumers to handle money and use new financial services.

The CFPB’s proposed Rule 1033 aims to guarantee that consumers can access and share their financial information with authorized providers. This rule is seen as a key step in modernizing U.S. financial services.

Industry Concerns Over Fees

The alliance warns that charging fees for data access could block many consumers from using new financial tools. They say it would particularly hurt lower-income users and small businesses.

Moreover, they argue that letting banks limit access could make the U.S. fall behind other countries like the UK and Brazil. These countries already have strong open banking systems that encourage competition and innovation.

The groups stress that fees could discourage new companies from entering the market. This could slow the development of useful apps and financial services.

Why Rule 1033 Matters

The letter emphasizes that strong open banking rules encourage a competitive and innovative financial ecosystem. Many successful financial apps were created because innovators expected the U.S. to adopt open banking.

The alliance is urging the CFPB to keep Rule 1033 strong. They want the final version to make sure Americans can access their financial data without extra charges.

By protecting these rights, the CFPB can help fintech and crypto companies build tools that serve everyday consumers. This could also increase competition in the financial industry.

CFPB Decision Could Shape Open Banking

The CFPB is reviewing comments and preparing a final version of Rule 1033. Its decision will affect how open banking develops in the U.S.

If the rule stays strong, consumers will have better access to financial services. It could also allow fintech and crypto companies to grow and innovate more freely.

On the other hand, weakening the rule may give banks more control over data. This could limit options for consumers and slow down new financial technology.

For now, industry leaders and consumers are waiting to see how the CFPB acts. Many believe the decision could shape the future of banking and financial innovation for years to come.