Visa Abandons Open Banking in US as Data-Access Debate Rages

Visa Inc. has decided to shut down its open-banking business in the United States due to regulatory uncertainty surrounding consumer data rights and the potential for increased fees for accessing customer information. The decision comes amid an ongoing debate over data access and control in the financial services industry. Visa's open-banking platform was designed to facilitate the sharing of consumer financial data with third-party providers, but the company has now determined that the regulatory landscape is too uncertain to continue this service. The move highlights the challenges faced by financial institutions and fintech companies as they navigate the complex and evolving landscape of data privacy and consumer protection. While the open-banking model has the potential to drive innovation and improve financial services, the lack of clear regulatory guidance has created barriers to its widespread adoption. The decision by Visa to exit the US open-banking market underscores the need for policymakers to provide clearer guidelines and protections for both consumers and businesses in this rapidly changing digital landscape.