President Donald Trump signed an executive order that directs the Federal Reserve to examine how non-bank companies can access the nation's payment systems. The move could reshape the competitive landscape between traditional banks and fintech firms, potentially giving newer players a fairer shot at the plumbing of the U.S. financial system.
What the Order Does
The executive order doesn't change any rules on its own. Instead, it instructs the Federal Reserve to conduct a review of non-bank access to payment rails — the networks that move money between accounts. That includes things like the Fed's own services, such as Fedwire and FedNow, as well as private systems like ACH and card networks.
Banks have long dominated access to these rails, often arguing that non-bank entrants pose risks around security, capital, and oversight. The order signals that the administration wants the Fed to take a hard look at whether those barriers are justified — or whether they simply protect incumbents.
For fintech companies, direct access to payment rails can mean lower costs and faster settlement. Right now, many fintechs have to partner with a bank to move money, paying fees and dealing with extra layers of complexity. If the Fed's review leads to broader access, those companies could compete more directly on price and speed.
The order could level the playing field, as the facts state. That doesn't guarantee changes — but it puts a formal question in front of the central bank. And with Trump's backing, the review carries political weight.
The Banking Industry's Stake
Traditional banks have reason to watch closely. If non-banks gain easier access, it could erode a key advantage: control over the payment infrastructure. Banks earn fees from processing payments and from acting as the intermediary for fintech partners. More direct access for fintechs could squeeze that revenue.
At the same time, banks have long warned about risks. They argue that non-banks aren't subject to the same capital and liquidity requirements, and that giving them direct access could open the system to instability or fraud. The Fed's review will have to weigh those concerns against the goal of competition.
The order doesn't set a timeline for the review. The Federal Reserve now has the task of deciding how to proceed — and whether to recommend any changes to Congress or through its own rulemaking.
