NACS Urges Adoption of Open Banking Rule

NACS, along with other merchant and fintech associations, have sent a letter to Russell Vought, the acting director at Consumer Financial Protection Bureau, urging the administration to adopt an open banking rule.

NACS believes that an open banking rule does two things: first, it protects the right already guaranteed by law that gives individual Americans the freedom to share their own data with the apps and services of their choosing; second, it preserves the statutory prohibition on data access fees and excludes data rationing thresholds. 

The letter states:

“The freedom to share one’s own data belongs to individual Americans, not Wall Street banks. Section 1033 already guarantees individual Americans the right to share their financial data with the apps and services they choose, and that right underpins everyday freedoms, including access to affordable financial services …

A fee-free, unrationed open banking rule is the foundation for a competitive financial marketplace, and for the innovation and affordability the executive order is designed to promote. Weakening it now would hurt the small businesses and individual Americans who depend on financial technology tools for budgeting, saving, credit access, digital assets and payments, and it would slow the very innovation the Administration has committed to accelerating.”

NACS has previously asked the Trump administration to protect open banking, preserve consumer financial data rights and secure America’s continued leadership in financial innovation.