JPMorgan Chase has announced plans to implement fees for access to customer bank account data, potentially amounting to hundreds of millions of dollars, reported Bloomberg.
This decision could significantly disrupt existing business models within the financial technology sector.
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The largest bank in the US has shared pricing documents with data aggregators, which connect banks and fintech companies, outlining the new charges. Fees will vary based on data usage, with higher costs for payment-centric firms.
A JPMorgan spokesperson emphasised the bank’s commitment to developing a secure system for consumer data protection, stating, “We’ve had productive conversations and are working with the entire ecosystem to ensure we’re all making the necessary investments in the infrastructure that keeps our customers safe.”
These fees are expected to be implemented later this year, contingent on the outcome of a regulation established during the Biden administration, though they remain negotiable.
The introduction of these charges could drastically impact fintech companies that rely on access to customer bank accounts for operations, according to the news agency.
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By GlobalDataPlatforms such as PayPal’s Venmo, cryptocurrency wallets such as Coinbase, and retail trading brokerages such as Robinhood depend on this data for transactions.
Historically, these firms accessed this information at no cost through aggregators such as Plaid and MX, which serve as intermediaries.
The decision coincides with the uncertain future of a contentious data-sharing regulation finalised by the Consumer Financial Protection Bureau (CFPB), which allows consumers to request and transfer their data while mandating banks to share this information at no cost.
JPMorgan’s CEO, Jamie Dimon, has stated that third parties should compensate banks for access to their systems, asserting, “Third parties want full access to banks’ customer data so they can exploit it for their own purposes and profits.”
In February this year, JPMorgan Chase reportedly refused to share detailed private credit lending data with regulators, complicating oversight for agencies such as the FDIC.
