Who Are Data Middlemen Anyways?

Data middlemen, commonly known as data aggregators or fintechs, are conduits in the information economy, acquiring, compiling and redistributing consumer data to other companies. Their business model is simple – grab as much data as they can and then profit handily off American consumers’ personal data, without sharing the cost or responsibility of protecting it.

Biden’s Bad Rule Has Become Trump’s Problem To Solve  

Biden’s CFPB implemented the Section 1033 rule at the 11th hour of his presidency, just weeks before President Trump took office amid a flurry of other executive and regulatory actions.

President Trump’s Administration Deemed Biden’s “Open Banking” Unlawful

The Biden-era Section 1033 rule would have handed over vast amounts of sensitive consumer financial data to companies most Americans have never heard of and that lack the significant data protection protocols financial institutions have to follow.

That’s why the Trump administration put a stop to it before it could harm consumers, and a federal court agreed. In fact, the court found that the Biden-era CFPB failed to consider the cumulative impact of its rule’s provisions on data security. The agency’s omission of a comprehensive risk assessment is a fundamental regulatory failure. The judge agreed that the rule’s requirements – forced sharing of sensitive data and no prohibition on risky practices like screen scraping – create significant security risks.

Their leadership sets a clear precedent: The interests of Main Street America must come before those of fintech and its lobbyists. It’s imperative that decisionmakers in Washington raise the bar on how data middlemen behave.

Consumers or Corporations?

The story Silicon Valley fintechs and their lobbyists are pushing is not just misleading, it is false. They want you to believe that without the “open banking rule,” consumers would be cut off from their platforms, blaming banks for supposedly trying to put them out of business for access to their secure infrastructure. This narrative is a smokescreen.

While they point the finger, fintechs stand to gain the most from this unfair system – at the expense of consumer consent, privacy and security.

President Trump Understands the Art of The Deal

Businesses don’t need government mandates to deliver for their customers. Under President Trump’s leadership, private industry is addressing complex challenges and delivering innovation without compromising security. The proof? Nearly all of the major data aggregators have struck deals to pay for data access, making indiscriminate data collection less attractive.  Because the data they’re gathering now has a cost, they’re being more judicious, supporting data minimization and ultimately stronger security. Even with proof that free markets deliver results, fintechs continue advocating for government mandates, favoring Silicon Valley billionaires over consumer concerns.

Consumer consent, protections and common-sense free market solutions, not Silicon Valley’s self-serving data-grab scheme, must guide today’s rulemaking.

Cutting Through Fintech’s Noise

Trump’s CFPB reviewed thousands of public comments that overwhelmingly rejected tired arguments that influenced the CFPB under the Biden administration.

With an update to the “open banking” rule expected soon, now is the moment to listen to voters and ensure every voice is heard.

In fact, a national survey conducted by the Trafalgar Group found that nearly 80 percent of voters support rules that prevent unlimited access to their data without explicit, revocable consent. Additionally, nearly 9 in 10 American voters are demanding that tech companies, financial apps and any other third-party company that touches the bank account data must meet the same security standards as banks, and that more than 8 in 10 believe these companies should support the cost of protecting that data.

The Path Forward is Clear

We must protect consumer data and prioritize America’s innovation economy without subsidizing data middlemen. President Trump recognized that, federal courts recognized that and the American people recognized and supported that.

It’s up to leaders in Washington to stand on the side of consumers, not the deep-pocketed fintechs fighting tooth and nail to maintain their grip on the personal data feeding their profits, and end Biden’s Section 1033 Rule. Under Trump’s leadership, we can strengthen consumer protections, empower real consumer choice and allow for a truly fair, competitive marketplace.