JPMorgan to charge fintechs for data

Is JPMorgan about to up-end fintech business models by charging for data? It’s arguable that many fintechs grew on the strength of their data abilities, but for how much longer?

“The largest bank in the US has shared pricing documents with data aggregators, which connect banks and fintech companies, outlining the new charges,” reports Yahoo Finance, citing Bloomberg.

“Fees will vary based on data usage, with higher costs for payment-centric firms. Platforms 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. 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’.”