All articles tagged with #open banking
Visa has shut down its open-banking operations in the US due to regulatory uncertainties and debates over consumer data rights, focusing instead on markets like Europe and Latin America. This move comes amid ongoing discussions and legal challenges surrounding rules that govern data sharing between banks and third-party providers, with competitors like Mastercard continuing their open-banking services.
JPMorgan Chase plans to charge fintechs and crypto firms for accessing customer banking data, a move that industry executives warn could hinder innovation, increase costs for consumers, and potentially stifle competition, especially for early-stage startups. While mature fintechs like PayPal and Block may be less affected, the fees could significantly impact smaller firms and the crypto industry, raising concerns about data ownership, market competition, and the future of open banking in the US.
JPMorgan plans to start charging FinTech companies for access to consumer bank data, potentially impacting the FinTech sector's business models amid regulatory uncertainties surrounding open banking rules. The fees could significantly increase costs for data aggregators and FinTechs, with effects expected later this year.
JPMorgan Chase plans to charge fintech companies hundreds of millions of dollars for access to customer bank account data, potentially disrupting industry business models, amid ongoing debates over open banking regulations and data sharing rules.
A report commissioned by the UK government has called for the development of a "digital alternative" to Visa and Mastercard for card payments, citing dissatisfaction with the cost of card schemes and a lack of choice. The report suggests that open banking, which allows third-party fintechs to offer payment services using customer data, could provide a lower-cost alternative for retailers. Visa and Mastercard welcomed the review's recognition of their contributions to the payments landscape and expressed a willingness to work with the government to promote innovation in the sector.
The Consumer Financial Protection Bureau (CFPB) has released a proposal aimed at giving consumers more control over their financial data and making it easier for them to switch banks. The proposal would require financial firms to share consumer data with other businesses offering competing products, prevent them from charging for it, and prohibit the use of personal data for targeted advertising. It also seeks to standardize the patchwork data-sharing system between traditional banks and fintech startups. The proposal faces feedback and lobbying before approval, but both banks and fintechs have found aspects to appreciate in the proposed rule.
The Consumer Financial Protection Bureau (CFPB) has proposed a rule to accelerate the shift towards open banking, giving consumers control over their financial data and protecting them against misuse. The rule would require financial institutions to share data with other companies offering better products and services, allowing consumers to switch providers easily. It aims to establish norms in the market and prevent incumbents from hindering competition. The proposed rule would also ensure that consumers have access to their data free of charge, the legal right to share their data, and the ability to walk away from bad services. It includes robust protections against surveillance and misuse of data and aims to move away from risky data collection practices. The requirements would be implemented in phases, with larger providers subject to them sooner. The proposed rule is the first step in implementing personal financial data sharing standards and protections.
UK-based fintech Volt has raised $60m in a Series B funding round led by IVP, with participation from CommerzVentures, EQT Ventures, Augmentum Fintech and Fuel Ventures. The company, which integrates with 5,000 banks in the UK, Europe and Brazil, will use the funds to expand internationally and develop its product. Volt's services include online payments, payments by link and recurring payments. The company's gross margins on transactions are over 80%, according to CEO Tom Greenwood.