- The CFPB announced plans in late October to issue data-sharing rules when it comes to financial data that moves between banks, data aggregators, and third-party fintechs.
- With both compliance and competition concerns, banks have differing approaches when it comes to permissioning consumer data.
- That’s led to a fragmented ecosystem, where banks and data aggregators maintain separate bilateral agreements on what data should be shared.
- Both aggregators and banks are supportive of establishing a clear framework for data sharing. But there are considerations around oversight and liability that need to be ironed out.
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The relationship between banks and fintechs is complicated. Once seen as scrappy disruptors, fintechs have established themselves as a serious threat. For a majority of Americans, these consumer apps have become a key part of their financial lives.
From peer-to-peer transfers to new forms of credit and no-fee bank accounts, fintechs