Visa Shuts Down U.S. Open Banking Unit

Visa has shut down its U.S. open banking division, according to Bloomberg reports. The payments giant attributes this move to growing regulatory uncertainty and changing dynamics in how banks charge for customer data access. Instead of pursuing American growth, Visa will now focus on what it calls “high-potential markets,” particularly Europe and Latin America. These regions show faster open banking adoption rates and clearer regulatory frameworks.

Regulatory Reversals Create Uncertainty

This decision comes during significant political and regulatory changes. In October 2024, the Consumer Financial Protection Bureau (CFPB) introduced the Personal Financial Data Rights rule. This regulation gave Americans the right to instruct banks to share financial data with authorized third parties. Many saw this rule as a positive step toward creating fair competition between banks and fintech innovators.

However, the Trump administration reversed course in May 2025. The CFPB announced plans to completely eliminate the rule. The Financial Technology Association (FTA) criticized this reversal, calling it a “handout to Wall Street banks.” This sudden policy change created immediate uncertainty for fintech companies relying on affordable, seamless access to consumer financial data.

Banks Prepare to Impose Data Access Fees

Complicating matters further, major banks like JP Morgan plan to charge fees for companies seeking client account data. Reports indicate that pricing sheets have already reached data aggregators. This suggests that data access costs could increase substantially. Such changes threaten to raise operating costs for fintech companies and potentially reduce consumer choice in financial services.

Industry Impact and Response

The CFPB has started developing a revised open banking framework since the reversal. However, Visa’s departure highlights the challenges facing the U.S. market. While open banking continues growing globally, especially in regions with stronger regulatory clarity, America risks falling behind. Visa’s strategic shift emphasizes the global divide in fintech innovation and regulation. The U.S. environment appears increasingly unfriendly toward initiatives that once promised to democratize financial data.

Global Implications and Market Divergence

Visa’s decision reflects broader trends in financial technology regulation worldwide. European markets benefit from clear guidelines under PSD2 regulations. Latin American countries increasingly embrace open banking as a tool for financial inclusion. Meanwhile, the United States struggles with inconsistent regulatory approaches that change with political administrations. This inconsistency creates challenging operating conditions for financial technology companies seeking long-term stability.

Future Outlook for U.S. Open Banking

The current situation presents significant challenges for fintech innovation in America. Without reliable data access arrangements, startups may struggle to compete with established financial institutions. Consumers might face reduced options and potentially higher costs for financial services. However, some industry observers believe market forces might eventually drive renewed progress toward open banking, regardless of regulatory setbacks.

Potential Paths Forward

Several developments could influence future open banking progress in the United States. Congressional action could establish more permanent regulatory frameworks less vulnerable to administrative changes. Industry-led initiatives might develop standardized approaches to data sharing that satisfy both privacy concerns and innovation needs. Additionally, consumer advocacy groups could push for renewed protections that ensure fair access to financial data.

CFPBconsumer datadata aggregatorsfinancial data rightsfintech accessfintech regulationJP MorganOpen BankingTrump administrationVisa