Who Are Data Middlemen Anyways?

In a recent Trafalgar poll, a majority of likely voters say they were not aware that many popular

apps and online retailers use thirdparty services known as data middlemen to process transactions, check account balances and power personal financial management apps.

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.

Finish the Fight: Locking in Bank-Level Security

The previous administration’s rule left gaping loopholes for unaccountable fintech middlemen, setting government-driven mandates ahead of actual data security. These policies left it up to unelected regulators to determine what safeguards are best for your information.

President Trump’s CFPB can correct that wrong. By implementing uniform, consistent safeguards, the administration can ensure that your financial data stays protected everywhere it goes. If we lock in these protections now, no future regulator can undo them.

“Open Banking” Unlawful

The 2024 rule would have handed over vast amounts of sensitive consumer financial data to companies most Americans have never heard of and which lack the significant data protection protocols financial institutions must follow.

In fact, the court found that the previous 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 fintechs and their 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. Data middlemen are asking blue state regulators to put forward rules that protect their bottom line and leave your data exposed.

This isn’t just about today, but about protecting your data in the future.  Without a strong federal standard, open banking effectively turns into an unregulated data mine for Silicon Valley’s AI models, built on your private banking information.

AI raises the stakes – consumers need durable security, clear permissions and consistent standards that protect them now, and in the future. Your financial data shouldn’t become someone else’s training fuel.

President Trump Wants to Finish the Fight

Businesses don’t need government mandates to deliver for their customers. The proof? It’s already out there. Major data aggregators have actively struck market-driven deals to pay for secure data interfaces. If data middlemen truly value security, they must pay for it. Forcing ‘free access’ via federal overreach only subsidizes billionaire fintech platforms at the expense of Main Street’s data safety.

Cutting Through the Noise

Trump’s CFPB reviewed thousands of public comments that overwhelmingly rejected tired arguments that put data middlemen ahead of everyday Americans.

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

However, progressives like Elizabeth Warren, Rohit Chopra and Gavin Newsom are pushing in the wrong direction at the expense of consumer choice, and they’re winning in blue states.

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 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 fintechs fighting tooth and nail to maintain their grip on the personal data feeding their profits, and reform the Section 1033 Rule. Under Trump’s leadership, we can strengthen consumer protections, empower real consumer choice and allow for a truly fair, competitive marketplace.