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.
Todd is the host of PitchIt: the fintech startups podcast, a weekly interview show featuring emerging fintech founders and leading venture capitalists. He is responsible for leading the content team which covers fintech through daily & weekly email newsletters, editorial, virtual events, and in-person conferences. He has been covering fintech, banking, and venture capital for more than 15 years, including speaking regularly at industry events.