The following is the opinion and analysis of the writer:
Washington is revisiting rules governing open banking and the outcome matters deeply for Arizona families. The Consumer Financial Protection Bureau's (CFPB) reconsideration of its Section 1033 data-sharing mandate gives policymakers a chance to protect Arizonans most vulnerable to financial instability: those in rural banking deserts and tribal communities where access to affordable financial services remains limited.
The central question isn't whether consumers should access their financial data. They should. It's how to structure that access without sacrificing the security and stability that Arizona's most underserved communities desperately need.
For Arizona's rural and tribal communities, open banking could be transformative. Tribal nations and remote areas across Arizona have historically lacked reliable access to traditional banking infrastructure. In 2018, the Federal Reserve Bank of New York estimated that nearly 395,000 Arizonans lived in a banking desert, meaning they did not live within 10 miles of a bank branch. Well-designed open banking rules could enable these communities to use the financial apps and digital services they’ve come to rely on securely. But poorly designed rules, particularly those that don't account for the genuine costs of secure data infrastructure, could discourage the very innovation and investment needed to reach these populations.
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The CFPB's previous approach attempted to mandate data-sharing without compensation for banks from fintech companies, embedding what amounts to a price control. While well-intentioned, this framework overlooked a fundamental problem: secure data infrastructure costs money. Cybersecurity, fraud mitigation and system monitoring require sustained investment. When regulators prohibit banks from recovering these costs, they weaken the business case for the secure infrastructure that protects consumers — particularly those lacking alternatives to fintech tools used to pay for countless goods and services.
In a state where cost-of-living pressures are squeezing Arizona households, forcing banks to absorb uncompensated costs could ultimately be passed to consumers through other fees or reduced service quality.
The good news: President Trump's pause on enforcement of a Biden-era version of the rule allowed market participants to negotiate voluntarily. JPMorgan Chase reportedly reached pricing agreements with 95% of major data aggregators. Consumers weren't cut off from financial apps. Innovation didn't stop. This demonstrates what Arizona policymakers should learn: private agreements can allocate costs, manage risk and preserve consumer access more flexibly than rigid federal mandates.
As the CFPB revisits Section 1033, it should prioritize durability. Financial regulation that swings sharply between administrations destabilizes investment in the secure infrastructure Arizona needs. A properly constructed rule can establish standards for consumer consent, data security and transparency, all while leaving pricing and implementation to negotiated agreements grounded in real costs and security requirements.
Critically, the rule should clarify that banks aren't required to provide uncompensated access to their systems and that cybersecurity remains paramount. To do otherwise would be bad precedent and bad policy. A rule penalizing security investment is a rule that harms consumers. And allowing the government to set price controls outside what the market demands means that every other business in Arizona is suddenly more vulnerable to what Washington bureaucrats decide is appropriate.
For tribal nations, rural communities and families already stretched thin by rising costs, this matters enormously. Open banking can expand financial opportunity, but only if the underlying infrastructure is secure and sustainable.
The CFPB should treat this reconsideration as a reset. Arizona deserves a rule that protects consumer rights, supports innovation and creates stable conditions for the financial inclusion our state's most vulnerable residents need. That requires discipline, pragmatism and a commitment to security over symbolic mandates.
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Patrick M. Brenner is president and CEO of the Southwest Public Policy Institute, a 501(c)(3) nonprofit research organization focused on advancing data-driven policy solutions across the American Southwest, with an emphasis on education, public safety, and economic growth.
