Prime Highlights:
- JPMorgan has reached new paid agreements with major fintech data firms, ending a long dispute over access to customer banking information.
- The deals aim to make open banking safer and more reliable, ensuring users can still connect their accounts to popular financial apps.
Key Facts:
- The agreements cover more than 95% of all data requests, including those from Plaid, Yodlee, Morningstar, and Akoya.
- JPMorgan lowered its originally proposed fees after negotiations, while fintech intermediaries secured concessions on how data requests will be handled.
Background:
In a major development reshaping the relationship between traditional banks and financial technology companies, JPMorgan Chase has reached new agreements with leading data aggregators to charge for access to customer information. The deals, struck after weeks of negotiations, involve major fintech intermediaries including Plaid, Yodlee, Morningstar, and Akoya, firms responsible for more than 95% of third-party data requests made through popular consumer finance apps.
JPMorgan spokesperson Drew Pusateri said the new deals will help make open banking safer and more reliable, while still letting customers safely connect their bank accounts to the apps they use for budgeting, investing, and sending money. The agreements follow months of tensions between big banks and fintech companies, with both sides debating who should bear the cost of the rapidly expanding data-sharing ecosystem.
The dispute escalated last year when the Consumer Financial Protection Bureau finalized an “open-banking rule” requiring banks to share customer data without charging fees. Although the rule was expected to cement free data access, banks challenged it in court and gained momentum after the new administration signaled its support for overturning the regulation.
Amid this regulatory uncertainty, JPMorgan reportedly informed fintech aggregators earlier this year that it would begin imposing significant fees for access to its systems. While the bank ultimately agreed to lower pricing than initially proposed, the new contracts mark a clear shift in the balance of power, signaling that big banks are increasingly willing to monetize data connections long provided at no cost.
Industry experts say JPMorgan’s move is likely to set a precedent for other large banks. However, fintech advocates warn that such fees could raise barriers for emerging startups and lead to higher costs for consumers. Several industry groups argue that large banks are leveraging their market dominance during a period of regulatory ambiguity.
Despite the criticism, both JPMorgan and the participating fintech firms emphasized that the agreements help preserve continuity for millions of app users. But with key legal questions still unresolved, the broader battle over data access and pricing is far from over.