JPMorganChase and fintech company Plaid have renewed their data sharing partnership, ensuring customers can securely use financial services reliant on access to their banking information.  

The collaboration between the two firms includes a pricing structure for data access. 

Both parties have agreed to invest in technology to facilitate improved access to financial data, the JPMorganChase press release said.  

The partnership allows JPMorganChase customers to link their bank accounts to a range of external financial services, such as budgeting tools, payment systems, and investment platforms.  

The extension will not alter the terms of Plaid’s agreements with its other customers, nor will it change their pricing structures. 

While the specifics of the fees involved in the agreement have been acknowledged by both JPMorganChase and Plaid, the exact figures have not been disclosed, according to a Bloomberg report.  

The previous arrangement between the two companies did not involve such fees. 

The topic of consumer data sharing has been a point of contention among banks, with concerns about costs and liabilities. 

The issue escalated when JPMorganChase indicated it would start charging for data requests from third parties, causing concern among smaller companies over potential costs, the news publication noted.  

The US Consumer Financial Protection Bureau is revisiting regulations concerning consumer data sharing, which had previously prohibited fees like those agreed upon by JPMorganChase and Plaid. 

The bureau is currently soliciting public input to inform its decision-making process. 

Following objections to JPMorganChase’s fee proposals, including legal challenges and criticism from stakeholders in the fintech sector, the CFPB has reconsidered its stance on the open banking rule and is reviewing the regulation. 

The Financial Technology Association, which counts Plaid among its members, is defending the principle of free data access in court, the report added.  

JPMorganChase has previously expressed concerns that companies have been accessing its customer data without compensation and then monetising it. 

JPMorganChase consumer payments head Melissa Feldsher said:  

“JPMorganChase has a long history of working with Plaid and we’re excited that partnership will continue and the open banking ecosystem will continue to thrive.  

“Today’s announcement will ensure that our customers can continue to quickly, safely, and securely access their financial data for years to come and stay connected to the products they rely on every day.”  

Plaid COO Eric Sager stated: “This extended agreement ensures ongoing access for the millions of Chase customers who rely on Plaid every day to connect with the products and services they trust.”   

In June, Experian and Plaid forged partnership aimed at improving credit decision-making by integrating cash flow data with traditional credit analysis.