JPMorgan Spooks Fintechs With Plans To Charge For Access To Customer Data

JPMorgan's proposed fees for customer data access would cost fintech startups between 60 and 100% of their annual revenue 'just from one bank,' according to a trade group representing the affected firms. Steve Boms, executive director of the Financial Data and Technology Association, said the charges would apply across all 30 companies in his group that received pricing notices from the nation's largest bank. The trade association, whose members include Plaid, Fiserv and Intuit, called JPMorgan's move a 'pure and simple' attempt to kill competition that would 'put third parties out of business altogether.'

The fees could take effect in September, ending more than a decade of free data access that fintech companies have used to build their business models. JPMorgan can now charge for data access after the Trump administration changed Consumer Financial Protection Bureau rules that previously prohibited such fees. The Financial Technology Association has taken the dispute to federal courts seeking to restore the Biden-era protections, while crypto trade groups have written directly to President Trump warning the fees would hurt digital currency companies.

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