Technology-Led Financial Services Drive Competition and Better Outcomes for Consumers

WASHINGTON, D.C. – The Financial Technology Association (FTA) submitted a comment letter today in response to the Consumer Financial Protection Bureau (CFPB)’s request for information about costly, pervasive junk fees that hurt consumers and drive up the cost of everyday goods and services, including financial services. 

FTA represents innovative financial technology leaders driving competition that results in lower costs, more transparency, and responsible, pro-consumer financial products. A study by Plaid and the Harris Poll shows that fintech gives Americans more control over their finances (73 percent) and reduces financial anxiety (68 percent).

“Many of our members launched their businesses to target costly fees that drain tens of billions of dollars from American households,” said Penny Lee, Chief Executive Officer of the Financial Technology Association. “Now, competition from fintech companies is upending the status quo in traditional financial services, prioritizing consumer outcomes over expensive junk fees.” 

FTA’s comment letter details how fintech competition helped reduce common fees that plague consumers, including overdraft fees, high credit card fees, and remittance fees. Fees such as overdraft charges cost consumers $15 billion a year, largely targeting the most financially vulnerable. Americans, on average, pay $1,000 a year in interest on revolving credit card debt. 

Fueled by open banking, a technology that empowers consumers to control their own data and finances securely, fintech innovation helps reduce or eliminate these costs. Fintechs provide speedier delivery of payments or wages, accounts that do not charge overdraft fees if balances temporarily dip, and financial tools that help manage cash flows. 

In addition to supporting the growth of fintech companies driving this healthy competition, FTA’s letter calls on the CFPB to consider other policy recommendations to ensure consumer fairness and choice, such as: 

  • Supporting consumer-centric implementation of open banking regulation and establishing a broad data right that is consistent across direct and authorized access;
  • Examining the benefits of digital investment and financial advisory platforms to help eliminate high fees and promote access for a broader set of consumers;
  • Updating the CFPB’s Remittance Rule to require disclosures showing the “total cost” for cross-border payments that include both exchange rate margin and upfront fees; and
  • Supporting the use of AI/ML tools in underwriting, subject to appropriate safeguards, to promote more fair and inclusive lending, especially for the underserved. 

Click here to read FTA’s full junk fee comment letter


The Financial Technology Association (FTA) champions the transformative role of financial technology for American consumers, businesses, and the economy. Representing industry leaders, FTA elevates fintech’s power to increase competition and drive financial innovation through responsible products and services. As our members’ voice in Washington, FTA advocates for the modernization of regulation to support greater access to financial services. Learn more at