Visa Halts Open-Banking Venture Amid Fintech Disputes
Visa has shut down its open-banking operations in the U.S., a move linked to ongoing disputes between banks and fintech firms over customer data access. This sector faces uncertainty, with banks imposing fees on data access. Regulatory revisions for consumer data rights are also underway.
Payments industry giant Visa has recently closed its open-banking business in the United States, according to Bloomberg News. This decision comes amid disputes between banks and fintech companies over accessing customer bank data.
Major financial institutions, such as JPMorgan Chase, have started charging fintechs fees for accessing data, stirring controversy in the sector. Banks cite these charges as necessary for data security, while fintechs argue that they hinder business and restrict access to what they believe is customer-owned data.
In response to these disputes, the U.S. Consumer Financial Protection Bureau is undertaking a review of regulations concerning consumer data sharing to balance interests between banks, fintechs, and consumers.
(With inputs from agencies.)
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