Small Banks, Credit Unions Oppose CFPB Ban on Customer Data Fees

Smaller banks and credit unions say they’re disappointed the Consumer Financial Protection Bureau’s open banking proposal won’t let them charge customers for sharing financial data—even though free data exchanges are already the industry norm.

Those lenders say the coming requirements will force them to purchase new offerings from core service providers such as Fiserv Inc. and Jack Henry & Associates Inc. to enable customer financial data sharing without the use of “screen scraping,” in which people share their bank login credentials with third parties. The CFPB’s proposal to get rid of limits on the number of times a fintech can ...