Fintech - March 2026

Why It Matters

Open‑banking reforms and partnership oversight will reshape fintech product design and data‑sharing costs, while heightened enforcement signals rising compliance burdens for the sector.

Key Takeaways

• CFPB aims to finalize interim open banking rule in 2026
• OCC and Fed to study BaaS partnerships under new act
• States require AI‑using fintechs to disclose algorithms
• CFPB shifted from rulemaking to UDAAP enforcement
• MoneyLion settlement includes $1.75 million consumer redress

Pulse Analysis

The CFPB’s move toward an interim final open‑banking rule marks a pivotal shift after the 2024 rule was halted amid litigation and technical concerns. By reopening the rulemaking process, the agency is soliciting input on who may access consumer data, whether fees are permissible, and what security standards must apply. This redesign could lower barriers for fintechs that rely on data aggregation while imposing clearer compliance obligations, potentially reshaping the competitive dynamics of U.S. financial services.

Parallel to data‑access reforms, Congress is weighing the Bank‑Fintech Partnership Enhancement Act, which would grant the OCC and Federal Reserve authority to study banking‑as‑a‑service (BaaS) arrangements. Coupled with the 2025 executive order that stripped “reputation risk” from debanking guidance, regulators are signaling a more collaborative stance toward fintech‑bank collaborations. Yet, the focus on third‑party risk management suggests that robust governance, cyber‑security, and risk‑assessment frameworks will become mandatory for firms seeking to partner with depository institutions.

Enforcement trends in 2025 illustrate the CFPB’s strategic pivot to UDAAP actions rather than prescriptive rulemaking, as seen in the nominal‑penalty case against a bankrupt fintech provider. State‑level AI disclosure laws in Texas and California add another compliance layer, requiring fintechs to publish algorithmic use and monitor for legal violations. The MoneyLion settlement, which included $1.75 million in consumer redress, exemplifies the growing willingness of federal, state, and local authorities to coordinate enforcement. Fintechs must therefore invest in comprehensive compliance programs that address data rights, AI transparency, and partnership risk to navigate an increasingly complex regulatory landscape.