Banks, Fintechs Battle Over Customer Data in Open Banking Plan

Banks’ ability to charge fees and control how much customer data they share with financial technology startups are among the key sticking points for industry groups weighing in on a coming open banking rule from the Consumer Financial Protection Bureau.

The CFPB’s open banking proposal, required under Section 1033 of the 2010 Dodd-Frank Act, would allow consumers to easily share their bank and credit card account data with third-party fintech apps like Wealthfront or Venmo. Fintechs would need to have baseline data-security protocols, and banks couldn’t charge fintechs for accessing the customer data.

Banks want the option to impose ...