There is a behind the scenes fight brewing between fintechs and banks who are setting setting stricter guidelines on who can access customer data; banks are worried that when apps access customer data they have a greater potential to be hacked and then the question becomes who is liable to reimburse the customer; “Giving consumers the ability to safely permission their data so they can use these services isn’t just a nice to have, it’s an imperative,” said Sima Gandhi, head of business development and strategy at Plaid Technologies Inc., to American Banker; banks have started to create APIs to allow for the data to be shared but they can also restrict access via these APIs; fintechs have started to strike deals with banks over data sharing, though it is on a case by case basis; there has been talk of potential legislation but nothing like the open banking regulations in Europe have been seriously considered in the U.S. yet. Source.
