The news: Truist has signed a data-sharing agreement with Plaid, giving the bank’s consumer and small-business customers a direct, API-based way to connect their accounts to fintech apps. The agreement also includes some upgrades to system architecture, according to the companies.

Trendspotting: Truist announced in February that it had partnered with Mastercard to launch its first direct open banking–API integration. Truist customers will be able to connect their bank data to fintech apps that participate in Mastercard’s open banking network. Open banking connections have been in the works across the banking industry for years, and Truist announced in 2022 that it had partnered with Akoya for an indirect solution.

Zoom out: When JPMorgan announced last summer that it would charge for data access, it provoked fury from the fintech industry and a flurry of lobbying. But in September, JPMorgan Chase and Plaid came to terms when they renewed their data access agreement and set a precedent that appeared to favor banks: In November, JPMorgan signed updated deals with Plaid, Yodlee, Morningstar, and Akoya, accounting for more than 95% of open banking data requests to the bank’s systems; terms were not disclosed.

Implications for banks: Since the Consumer Financial Protection Bureau (CFPB) withdrew a 2024 open banking regulation and published a revised version for public comment, banks have gained ground. One of the banking industry’s arguments was that the government should not prevent its members from charging fees for data access. That issue is effectively settled, and without the requirements from the CFPB, banks are in a stronger position to negotiate with fintechs over data access.

Banks should no longer fear open banking now that it has become commonplace. A favorable regulatory environment and the precedent that’s been set by several large financial institutions shows that the technical and financial needs can be negotiated.