Last updated on October 24, 2025
No, under proposed federal rules, U.S. banks will be required to share consumer-authorized financial data with digital wallet providers and other third parties. Excluding them without valid reason would violate consumer data rights under the Dodd-Frank Act.
The Gatekeepers of Your Data
You’re budgeting with your favorite digital wallet app, trying to sync your bank account—but the connection fails. Not because of a glitch, but because your bank won’t share the data. Can they do that?
In the United States, the answer is increasingly no. Thanks to evolving federal rules, banks are being pushed to open the gates and let consumers decide who gets access to their financial data—including digital wallet providers.
The Legal Backbone: Section 1033 of Dodd-Frank
The push for Open Banking in the U.S. is rooted in Section 1033 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. This provision gives consumers the right to access their financial data and share it with third parties of their choosing. The law empowers the Consumer Financial Protection Bureau (CFPB) to define how this access should work.
In October 2024, the CFPB finalized a rule to implement these rights. The rule requires banks and other financial institutions to make transaction and account data available to consumers and authorized third parties—such as budgeting apps, payment platforms, and yes, digital wallets. The rule is set to begin implementation in April 2026.
Digital Wallets in the Spotlight
Digital wallet providers like PayPal, Venmo, Apple Pay, and Cash App have become essential tools for millions of Americans. These platforms handle billions of transactions annually and are increasingly used for everyday spending, peer-to-peer payments, and financial management.
Recognizing their importance, the CFPB issued a separate rule in late 2024 to bring large nonbank digital wallet providers under its supervisory umbrella. This ensures that these companies follow the same consumer protection standards as traditional banks.
Why Banks Might Resist
Some banks have been reluctant to share data with digital wallets, citing security concerns, competitive pressures, or technical limitations. But under the new rules, these reasons won’t be enough. If a consumer authorizes a digital wallet to access their data, the bank must comply—unless there’s a legitimate legal or security issue.
The CFPB has made it clear: consumers own their financial data, and they have the right to use it across platforms. Blocking access without justification could be considered a violation of federal law.
Oversight and Enforcement
To ensure compliance, the CFPB is working with standard-setting bodies like the Financial Data Exchange (FDX) to create secure, interoperable frameworks for data sharing. These standards aim to protect privacy, prevent fraud, and eliminate “pay-to-play” arrangements that favor certain providers.
Banks and digital wallets alike will be subject to supervision, reporting requirements, and public accountability. The goal is to create a fair and open financial ecosystem where consumers—not institutions—control the flow of information.
A Future of Seamless Finance
Open Banking is reshaping how Americans interact with their money. By requiring banks to share data with digital wallets and other authorized apps, the law is putting power back in the hands of consumers. So next time your app asks to link your account, remember: it’s not just a convenience—it’s your right.
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Sources
Access to Consumer Financial Data: Open Banking and the CFPB’s Section 1033 Rule
https://www.congress.gov/crs-product/IF13117
30 September 2025
CFPB Finalizes Rule on Federal Oversight of Popular Digital Payment Apps
https://www.consumerfinance.gov/about-us/newsroom/cfpb-finalizes-rule-on-federal-oversight-of-popular-digital-payment-apps-to-protect-personal-data-reduce-fraud-and-stop-illegal-debanking/
21 November 2024