The news: We recently covered JPMorgan’s decision to charge fintechs for access to customer data. Fintechs aren’t taking this lightly and don’t appear to be accepting of their fate. Our take: The current situation sets the stage for a battle of the lobbies. With the CFPB unlikely to reinstate stronger open banking regulations for now, fintechs may pivot to launching public education campaigns about how they believe this affects banking customers. This could be a strategic move to rally consumer support and advocate for their perspective on data access and financial choice in the interim. Meanwhile, more banks are likely to follow in JPMorgan’s footsteps—and PNC has already announced it’s considering a similar move, per Bank Automation News.

The news: Consumers in Canada under 40 switched financial institutions at twice the rate of older consumers over the past four years, per a J.D. Power survey. Meanwhile, the number who use digital-only banks jumped from 11% to 21% between 2022 and 2025, according to a study by Oliver Wyman LLC. Our take: We have covered how more than half of consumers in Canada would leave their current bank over poor experiences. All of these findings together show that no bank is safe in assuming customers will stay with them if they aren’t getting the best experience, the lowest fees, the best rates, etc. To stem this outflow and retain younger generations, Canada's Big Six banks must invest in competitive, digitally forward offerings that eliminate punitive fees, provide better rates, and deliver personalized financial guidance beyond traditional services.

The news: Stablecoin issuer Circle has applied for a US trust bank license, less than a month after its IPO launch. It had planned to make this move before the launch. Our take: We’ve recently covered multiple fintechs launching IPOs, and moving toward traditional banking—including acquiring licenses. Its decision which aligns with both of these trends signals how stablecoins become more mainstream in the banking world. Plus, Circle’s status as a national trust bank could enhance trust among customers who are still on the fence about investing.

The news: Klarna is pivoting toward digital banking in the US, preparing for its IPO amid growing scrutiny of the buy now, pay later (BNPL) market. This includes launching US debit cards and expanded savings offerings, with Klarna rebranding itself as a neobank aiming for a "super app" experience. Our take: This signals a broader trend of fintechs evolving into banks, intensifying pressure on traditional financial institutions (FIs) to differentiate. FIs must clarify their niche, pursue strategic scale, and accelerate digital transformation. Despite Klarna's expansion, FIs retain a key advantage: their card-based installment plans still outperform BNPL in customer satisfaction.

The news: The banking sector is evolving towards embedded finance and enhanced data-sharing, allowing customers to access financial products and services from any provider, on any platform. This unbundling trend, driven by fintechs, could marginalize traditional banks. The article draws a parallel to the music industry's digital disruption, where unbundling (like iTunes) and streaming (like Spotify) fundamentally reshaped its value chain. This transformation, catalyzed by companies like Napster, created diverse new models. The opportunity: Similar to how streaming music providers anticipate continued growth, banking customers increasingly seek unbundled services, with fintechs outpacing traditional financial institutions in new checking account openings as consumers hold multiple accounts for specific needs.

National Bank is distinguishing itself as the first major Canadian bank to implement a secure data feed (API) for its retail customers to share financial information with approved fintech applications, putting it ahead of Canada's potential 2026 open banking rollout. This innovative approach significantly reduces security risks by redirecting customers to National Bank's own website for identity verification, eliminating the need for customers to share online banking passwords with third-party aggregators (known as "screen scraping"). By taking an 80% stake in Flinks, a financial data aggregator that now accredits fintechs, National Bank transforms a potential threat to customer loyalty into an opportunity to deepen relationships, ensuring it remains the central hub for customers' financial lives even as they use other apps.

But fintechs are leading the way, using superior bill-pay offerings as differentiators.

The fintech will immediately offer certain customers up to $500 in loans.

With regulatory changes underway, it may be easier for fintechs to get banking charters.

Most firms have announced AI-related initiatives, but fintechs have a key advantage.

They’re designing their own pathways toward achieving financial goals and could use banks’ expertise.

We examine why this likely doesn’t mean banks are losing customers to their digital competitors.

The final version of the Consumer Financial Protection Bureau’s Section 1033 rule clarifies how financial institutions and apps must protect and share customer data.

The need for more detailed record-keeping will increase compliance costs.