The Financial Technology Association (FTA) has issued a letter to the President, urging the administration to consider policies that banks argue could undermine free markets. The letter was co-signed by data aggregators and fintech companies. In response, the American Bankers Association, the Bank Policy Institute, and the Consumer Bankers Association have issued a statement defending their practices.
"Banks don’t charge consumers fees to access their data," the statement reads. It highlights that due to banks' investments in secure systems, consumers now have more access to financial products and services than ever before. The associations claim that the FTA's letter attempts to mislead the administration into supporting policies for personal profit.
The banking groups criticize what they describe as a double standard where fintech companies can charge fees while expecting banks to provide services for free. They express support for current administration efforts aimed at strengthening U.S. competitiveness and innovation while protecting consumers.
The associations also mention their backing of efforts to lift regulatory restrictions on banks working with crypto companies and enabling AI innovation. They note that over 120 data aggregators connect financial data across providers, with Plaid alone connecting to more than 200 million bank accounts.
Charging for API access is standard practice among major companies like Amazon Web Services and Microsoft Azure, according to the banking groups. They argue that processing billions of requests from fintech firms comes at a cost.
The American Bankers Association represents a $24.5 trillion industry employing approximately 2.1 million people. The Bank Policy Institute advocates for universal and regional banks in the U.S., while the Consumer Bankers Association represents leading retail banks in America.
Information from this article can be found here.
