JPMorgan Chase and Plaid have come to an agreement following discussions about FinTech’s access to customer information.
On September 15th, both companies announced a renewal of their data access agreement. This new arrangement includes a pricing structure aimed at providing consumers with “safe, secure, quick, and consistent” access to their data in the future.
“We believe consumers should have the right to access and share their financial data, and we view JPMorgan Chase as a partner in that mission,” said Eric Sager, Plaid’s COO, in a press release.
He added, “This extended agreement guarantees continued access for millions of customers who rely on Plaid daily to connect with trustworthy products and services.”
A spokesperson for Plaid mentioned to Pymnts that specifics about pricing couldn’t be disclosed, but confirmed that there would be no alterations to current contracts or costs, meaning customers won’t incur extra fees.
This agreement was reached just two months after JPMorgan announced a plan to start charging FinTechs for accessing customer banking information.
A few weeks later, CNBC revealed that JPMorgan had found that most API requests from their system were coming from FinTechs in June.
According to a memo, the team noted that these requests were “very taxing” on the system.
API access was complimentary for years; however, earlier this year, the Consumer Financial Protection Bureau (CFPB) expressed support for revoking Rule 1033, a regulation from the Biden administration related to open banking.
The CFPB has indicated that it is seeking feedback on this matter, as stated in a recent advance notice of proposed rulemaking (ANPR).
A spokesperson for Plaid communicated to Pymnts that they “advocate for consumers’ right to choose and share their information,” and continue to push for this during the creation process of the ANPR rule.
On the other hand, at least one FinTech, Stripe, has voiced opposition to the new data fees. In comments submitted to the CFPB late last month, the company argued that regulators should not impose “illicit access fees” for linking consumer bank accounts with preferred financial products.
Stripe contended that “swift action by the CFPB is crucial to preserving our vibrant markets and fostering innovation in financial services.”
