JPMorgan Chase, America’s largest bank, is shaking things up in the fintech world. After years of providing free access, they’re now charging companies like PayPal, Venmo, and Coinbase for access to customer bank account information.
Big Fees on the Horizon
This move could rake in hundreds of millions of dollars for JPMorgan. These fintech companies rely on this data to streamline money transfers and trading for their users.
JPMorgan’s Reasoning
A JPMorgan spokesperson explained that the bank has invested heavily in secure data systems. They’re working with fintechs to ensure everyone contributes to protecting customer information. JPMorgan CEO Jamie Dimon also weighed in, stating in his shareholder letter that stricter rules are needed for third-party access to customer data. He emphasized the need for customer authorization, payment for access, limitations on data use, and accountability for any risks created. Dimon essentially argues that banks provide valuable services and deserve compensation for the use of their data.