WASHINGTON, D.C. – The Financial Technology Association (FTA) today filed a motion for summary judgment in Forcht Bank NA vs. Consumer Financial Protection Bureau (CFPB), urging the Court to uphold the CFPB’s Section 1033 open banking rule. As an intervenor in the case, FTA seeks to defend Americans’ right to securely access and control their financial data in today’s digital economy.
“Open banking supports consumer choice, putting easy-to-use and low-cost financial tools in the hands of more Americans,” said Penny Lee, President and CEO of the Financial Technology Association. “This rule is grounded in longstanding legal authority and reflects a bipartisan commitment to modernizing how Americans manage their financial lives. We urge the Court to uphold the rule and reaffirm Americans’ rights to securely share their financial data.”
The Open Banking Rule is Lawful and Vital to Innovation, Competition, and Choice
The CFPB issued the open banking rule under clear statutory authority granted by Congress, which defines a “consumer” as “an individual or an agent, trustee, or representative acting on behalf of an individual.” The rule aligns with Congressional intent to permit consumers to exert greater control over their financial data and for financial institutions to share this information “upon request.”
The rule also meets the legal standards required by the Administrative Procedure Act (APA). It is neither arbitrary nor capricious and was reasonably explained by the agency. The open banking rule was initiated during the first Trump Administration and has long enjoyed bipartisan support and been viewed as a driver of innovation and competition in American financial services. Efforts to improve the rule should be pursued through the appropriate rulemaking process, not litigation.
Legal Challenges Undermine Consumer Access and Market Innovation
While the plaintiffs raise pretextual concerns about safety and security, the rule directly establishes extensive privacy, security, and data protections, raising the bar for consumers and the entire ecosystem. This rule empowers consumers while supporting a safer and more transparent financial market.
Vacating the open banking rule would limit consumers’ ability to use the digital tools they rely on to manage their financial lives. According to a new survey conducted by the Harris Poll:
- 8 in 10 Americans oppose banks restricting their access to financial apps and services.
- An overwhelming 90% of Americans agree: “I believe I should have real-time access to my financial information.”
- Similarly, 75% of Americans support the right to share their bank data with trusted apps.
- 80% are concerned that big banks rolling back protections will create fraud and safety concerns.
Litigation Timeline
FTA filed its motion for summary judgment on June 29. The deadline for bank plaintiffs and the CFPB to file a reply in the case is July 29. Intervenor-Defendant FTA then has until August 29 to file a reply before the judge rules.
Strong consumer data rights are vital to preserving Americans’ financial freedom, preventing anti-competitive behavior, and ensuring innovation and competition. To learn more, read “Five Reasons Why Consumers Need a Strong Financial Data Right.”
ABOUT US
The Financial Technology Association (FTA) is a network of fintech leaders shaping the future of finance. We champion the power of technology-driven financial services to catalyze innovation and advocate for modernized policies and regulations that reflect the digital transformation.