Visa has closed its US open banking unit amid regulatory uncertainties and plans by banks to charge for customer data access, as reported by Bloomberg.
The payments giant has halted the operation that facilitated fintechs and other firms in accessing customers’ bank account data, redirecting its focus to “high-potential markets like Europe and Latin America,” according to sources.
In October, the Consumer Financial Protection Bureau (CFPB) issued the Personal Financial Data Rights final rule, granting Americans the ability to direct their banks to share financial data with third-party providers. However, under the new Trump administration, the CFPB sought to rescind this rule in May, a move the Financial Technology Association (FTA) labeled a “handout to Wall Street banks.”
Recent developments include JP Morgan planning to impose fees on companies seeking access to its clients’ bank account data, having even distributed pricing sheets to data aggregators—intermediaries connecting banks and fintechs. This week, the CFPB initiated efforts to create a revised open banking plan.