Open Banking in the US: Why now is not the time to sit back

GlobalData

Tue, May 19, 2026 at 6:14 AM EDT 4 min read

The original deadline for the first major milestone in the US’s open banking rollout (1 April 2026) just came and went, with little fanfare. With attempts at US regulation currently stalled, some US banks may feel grateful for the temporary postponement. But in reality, these banks should continue to dive into open banking and embrace it wholeheartedly - or risk being left behind.
Despite regulatory uncertainty, open banking in the US is still steadily advancing in practice, with all signs pointing to it as the way of the future. While it may be true that only a relatively small slice of US-based financial services institutions - banks, credit unions, fintechs and more - are Financial Data Exchange (FDX)-compliant today, the number of linked U.S. consumer accounts is rapidly expanding.

Additionally, in Canada, the Royal Assent of Bill C-15 was just granted in late March - marking a major step toward open banking for our northern neighbour.

While many US banks agree with and support the idea of customer-permissioned data sharing, some argue that the CFPB overstepped its authority; and that the rules create data privacy and security risks that are simply too onerous. While there are definitely still critical issues that need addressing - data security and fraud, liability, reciprocal data-sharing between fintechs and banks and more - I believe this position is myopic and imprudent. Delays in regulation will undoubtedly create significant disadvantages for both US banks and consumers over the longer-term. Here’s why:

The customer frustration index

With open banking legislation in the EU well-established, Europe typically sets the bar for digital banking experiences, introducing new capabilities across the entire market at once and creating more consistent user experiences and expectations.

Because many fintech apps operate globally across borders, they raise the expectation bar in the US, with users expecting their own banking apps to be able to do the same things - like personalised financial advice, real-time risk assessment and more. Social media further stokes the flame, with US consumers seeing posts and videos and thinking, “I want my app to do that!”

In the absence of open banking mandates, US banks tend to take a more disjointed approach, rolling out new features as customers demand them. We call this the “frustration index” and it’s always brewing just below the surface. If one bank doesn’t offer a highly sought-after feature, another one will – and with consumer willingness to switch banks reaching record highs in recent years, churn is a huge threat.