Open Banking and payments competition
Open Banking and payments competition
The article discusses the controversy surrounding Section 1033 of the Dodd-Frank Act, focusing on Open Banking and its impact on payments competition. It explains how banks, particularly JPMorgan Chase, are attempting to monetize or restrict access to Open Banking data, viewing it as an "existential risk" to their lucrative credit card business. The author argues that Open Banking enables lower-cost payment methods like ACH debits, which benefit consumers and businesses but challenge banks' traditional revenue streams. The piece also delves into the regulatory battles involving the CFPB, the role of data aggregators like Plaid, and the broader implications for innovation in financial services and the ability of banks to pick "winners and losers" in the market.
Note
it will be difficult to untangle the good that banks do with the not good that banks are doing now because end game capitalism doesn't actually prioritize innovation or people (if it doesn't have to).
sometimes, difficult things must be done.
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