Regulatory fragmentation and prudential tension

Welcome back to the Fintech Takes podcast. I’m Alex Johnson, joined in this episode by three guests — Steve Smith (Co-founder and CEO of Invela; former Co-founder of Finicity and Founder of the Financial Data Exchange), Todd Taylor (Co-head of Intellectual Property; Co-head of Commercial & Technology Transactions at Moore & Van Allen), and Dan Murphy (Founder of Sunset Park Advisors; former CFPB Open Banking Program Manager).

That’s right, a rare four-person episode!

And we’re digging into a question that’s been mostly overlooked in the open banking debate: not how data is shared, but who bears the risk when it is.

As banks, fintechs, and regulators sort through liability, accreditation, and third-party risk management, the lack of a shared rulebook has become increasingly clear.

The core tension: the U.S. built open banking on top of a fragmented regulatory structure and outdated third-party guidance, and everyone’s been improvising ever since.

So, what happens when something breaks … and who pays for it?

Highlights include:

• Why banks are still relying on OCC Bulletin 2013-29 and interagency third-party risk management guidance to govern a 2025 data-sharing market

• How Section 1033’s competition mandate at the CFPB often collides with prudential regulators’ safety-and-soundness priorities

• Why the industry may need a standardized accreditation framework and transparent risk registry for third parties

• How liability insurance and warranty-based risk-sharing could help balance accountability between banks and fintechs

This episode unpacks how an open-access ecosystem can evolve toward shared accountability, and why industry-led solutions like accreditation, registries, and risk transfer mechanisms may be the only viable path forward.

Thanks for listening! 

This episode was brought to you by Marqeta. Don’t sacrifice agility for stability. With Marqeta, launch payments experiences that perform at scale and flex with your business. Learn more at marqeta.com/ftt.

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Follow Todd Taylor: 

https://www.linkedin.com/in/todd-taylor-37506737/

Follow Dan Murphy:

https://www.linkedin.com/in/danieljmurphy01/

For more about Steve Smith, follow Invela:

https://www.linkedin.com/company/invela-network/

Follow Alex Johnson: 

YouTube: https://www.youtube.com/channel/UCJgfH47QEwbQmkQlz1V9rQA/videos

LinkedIn: https://www.linkedin.com/in/alexhjohnson

X: https://www.twitter.com/AlexH_Johnson