Visa's Exit from U.S. Open Banking and the Future of Fintech Data Access

In 2025, 's decision to exit its U.S. open-banking operations marked a seismic shift in the fintech landscape. This move, driven by regulatory uncertainty and rising costs, signals a broader industry reckoning. The U.S. open-banking rule, finalized under the Biden administration in October 2023, faced immediate legal challenges from bank lobbying groups, creating a vacuum of clarity. Meanwhile, 's announcement to charge fintechs hundreds of millions for data access further eroded the economic viability of open-banking models. For investors, this is not just a story of one company's pivot—it's a warning about the fragility of U.S.-centric fintech ecosystems in the face of regulatory and financial headwinds.

The Regulatory Quicksand of U.S. Open Banking

The (CFPB) is now racing to revise the open-banking rule, with proposed changes including data-access fees and stricter privacy mandates. These adjustments, while intended to balance innovation and security, risk creating a two-tiered system where only well-capitalized players can afford compliance. For smaller fintechs reliant on free or low-cost data access for identity verification, payments, and credit scoring, the cost of entry is becoming prohibitive.

Visa's exit underscores a critical truth: regulatory risk is no longer a peripheral concern but a central determinant of fintech success. The company's pivot to Europe and Latin America—regions with more mature open-banking frameworks—reflects a strategic reallocation of capital toward markets where rules are stable and growth is predictable. This shift is not unique to Visa. As the CFPB's rulemaking drags on, other infrastructure providers are likely to follow suit, prioritizing regions where they can scale without regulatory roadblocks.

Capital Flight to Regulatory Clarity: Europe and Latin America's Edge

While the U.S. grapples with legal and policy churn, Europe and Latin America have emerged as beacons of stability. In Europe, the Payment Services Directive 2 (PSD2) and its successor, , have created a harmonized environment for open banking. Despite low user adoption (under 10% as of 2025), capital inflows into European fintechs remain robust. In Q1 2025 alone, European fintechs raised €18.4 billion across 912 deals, with larger rounds (over $100 million) growing 2.6x quarter-over-quarter.

France's Flowdesk, which raised $102 million in early 2025, exemplifies this trend. The company is leveraging open banking APIs to expand cross-border services, targeting fragmented markets like Germany and the Netherlands. Similarly, Dutch fintechs have secured €3.1 billion in venture capital in 2025, a 47% increase from 2024, as they integrate real-time data sharing and embedded finance solutions. The EU's Markets in Crypto-Assets () and Digital Operational Resilience Act (DORA) further solidify Europe's appeal by standardizing compliance and cybersecurity requirements—a critical advantage for scaling fintechs.

Latin America, meanwhile, is outpacing Europe in open-banking adoption. Brazil's open-finance ecosystem, now in its fifth phase, has 61.9 million active consents and 102 billion API calls in 2025. The Payment Initiation API alone saw a 194% year-over-year increase, enabling fintechs to offer real-time payments and alternative credit scoring. Mexico's 773 fintechs and Colombia's mandatory open-finance framework (launched in June 2025) are creating fertile ground for innovation.

Investors are taking notice. Latin American fintechs like Nubank and MercadoLibre have capitalized on the region's digital-first banking systems and high unbanked populations. With less legacy infrastructure to overcome, these firms are scaling faster than their U.S. counterparts. For example, Chile's mandatory open-finance regulations, set to take effect in April 2026, have already spurred fintechs to secure capital by demonstrating readiness for compliance—a proactive approach that aligns with investor demands for regulatory certainty.

Strategic Risks and Opportunities for Investors

The U.S. fintech sector faces a dual threat: regulatory ambiguity and rising operational costs. Fintechs that rely on free data access—such as those offering budgeting tools or BNPL services—may struggle to sustain margins if fees become the norm. Conversely, companies in Europe and Latin America are better positioned to thrive.

For investors, the key is to identify firms that are not just surviving in these regions but actively shaping the open-banking ecosystem. In Europe, look for fintechs with cross-border capabilities and strong regulatory partnerships. In Latin America, prioritize companies leveraging open banking for financial inclusion, such as those offering e-KYC or embedded lending.

However, caution is warranted. Even in stable markets, adoption rates can lag due to customer skepticism or fragmentation. For instance, Europe's open-banking frameworks have not yet driven mass usage, highlighting that regulatory clarity alone is insufficient. Investors must also assess a fintech's ability to educate users and create value propositions that transcend compliance.

The Road Ahead

Visa's exit is a harbinger of a broader industry recalibration. As U.S. regulators dither, capital is flowing to regions where open banking is not just a policy experiment but a proven growth engine. For investors, the lesson is clear: U.S.-centric fintechs face mounting risks, while European and Latin American firms are building moats around regulatory clarity and scalable infrastructure.

The future of fintech data access will be defined by where capital flows—and right now, that direction is unmistakable.