Opinion: It’s time to put Americans back in control of their financial data

Every day, millions of Americans rely on apps like Venmo, Robinhood and Credit Karma to manage their finances. These tools make life easier, allowing people to send money, track spending or invest with a few taps on a phone. Although these tools are extremely convenient and are woven into our daily routines, they still leave us exposed to risks that are not front of mind. 

My activism and advocacy have always been rooted in fighting for the rights of marginalized communities that have historically been left out or gone without protections. This fight drives my work as president of the Equality California Institute across the state and in my community. We know and have seen that when systems fail the most vulnerable, everyone suffers. Open banking, the framework that allows financial apps to connect directly to consumer bank accounts through middlemen known as data aggregators, is one of those systems in urgent need of reform.

Data aggregators are essential to how apps function. They are the connection between our banks and the financial apps we use. Yet without strong regulations, these companies have too much power over sensitive financial information. Many use access granted for simple services to collect, package and sell data on a massive scale. One major bank recently reported billions of automated data requests in a single month, most of them initiated by aggregators, not consumers. That means financial activity is being pulled when people aren’t using the app, often without their knowledge or consent.

The stakes go beyond inconvenience. Unregulated data collection creates fertile ground for fraud, with certain transactions routed through aggregators found to be nearly 70% more likely to result in fraudulent claims. Practices like screen scraping, which allow aggregators to copy entire account histories, expose consumers to even greater risk.

This is why the Consumer Financial Protection Bureau’s (CFPB) work on open banking regulation matters so much. A strong rule would put consumers back in control: ensuring that only authorized data is collected, that it is stored and transmitted securely and that access ends immediately when a consumer revokes permission. Consumers should have clarity about exactly what data is being collected, how it will be used and the right to stop it at any time. Companies should be prohibited from selling or reusing financial data for purposes consumers do not explicitly authorize.

These protections are not radical. They are common-sense measures that protect everyone, especially the vulnerable communities that we have worked to help at the Equality California Institute, who often face the greatest consequences when financial information is misused or exposed.

The CFPB now has an opportunity to get this right, but the rulemaking process faces challenges. The Trump administration is moving forward with its own rule at the urging of the crypto industry, making it all the more urgent for advocates, policymakers and the public to unite around a framework that prioritizes consumers, privacy and security.

Open banking has the potential to empower people and support innovation, but only if we act to ensure it does so safely and equitably. Regulators must establish clear, enforceable rules that put consumers first, and Congress should stand behind these protections. When consumers control their data, everyone benefits. When corporations control it, everyone loses.

It is time for action. The CFPB can protect Americans’ financial privacy while still enabling the innovation that makes these apps so valuable. I believe that privacy, fairness and security are rights worth fighting for and I urge Washington to step up before more consumers are put at risk.