Letter highlights need for a durable national framework that modernizes GLBA while ensuring strong consumer protections and regulatory clarity

Washington, D.C. (April 30, 2026) – The American Fintech Council (AFC), the largest industry association representing both responsible fintech companies and innovative banks, submitted a letter to the House Financial Services Committee expressing support for the Guidelines for Use, Access, and Responsible Disclosure of Financial Data Act (the “GUARD Financial Data Act”). AFC underscores the importance of modernizing the federal consumer financial data privacy framework established under the Gramm-Leach-Bliley Act (GLBA) to reflect the evolution of the financial services ecosystem. Crucially, this modernization must preserve a clear, national standard that enables responsible innovation, supports competition, and ensures strong, workable consumer protections.

“Modernizing GLBA to reflect how financial data is used today is essential to maintaining both strong consumer protections and a competitive, innovative financial services sector,” said Phil Goldfeder, CEO of the American Fintech Council. “We strongly support the Committee’s efforts to create a clear, durable national standard that reduces fragmentation and enables responsible financial technology companies and banks to better serve consumers.”

In its letter, AFC expresses support for the GUARD Financial Data Act’s modernization of GLBA, including strengthened data minimization standards, opt-in consent for sensitive personal data, and expanded consumer rights for access, deletion, and appeals. The letter also highlights the bill’s improved transparency requirements related to data use and artificial intelligence, while underscoring the importance of maintaining implementation flexibility to ensure operational feasibility across financial institutions.

“A well-designed federal privacy framework must balance strong consumer protections with the flexibility needed to support responsible innovation and competition in financial services,” said Ian P. Moloney, Chief Policy Officer of the American Fintech Council. “The GUARD Financial Data Act makes meaningful progress toward establishing a modern, national standard for consumer financial data privacy that improves regulatory certainty for financial institutions and innovators alike. We appreciate the Committee’s thoughtful approach and look forward to continuing to engage as the legislation moves forward.”

The letter also highlights several new provisions in the legislation, including a two-year compliance period for key requirements like data minimization and deletion rights, which provides needed time for financial institutions and fintech partners to update systems and processes. AFC also supported the new definition of “former customer” and the narrowed “financial data aggregator” definition, both of which better reflect modern bank-fintech operations.

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