JPMorgan says fintech middlemen like Plaid are ‘massively taxing’ its systems with unnecessary pings

## JPMorgan vs. Fintech: A Data Battle Brewing

This article dives into a brewing conflict between JPMorgan Chase and the fintech companies that rely on accessing customer data. JPMorgan is planning to charge these “middlemen” for access, sparking debate and potential upheaval in the financial tech landscape.

• Data Overload: JPMorgan claims fintech aggregators are flooding their systems with excessive data requests, far beyond what’s needed for actual customer transactions. In June, only 13% of 1.89 billion data requests were transaction-related.
• Cost Concerns: JPMorgan cites rising costs to maintain the infrastructure needed for this data surge, as well as increased fraud linked to fintech-driven payments. They are looking to offset these costs with new fees.
• Fee Implications: The bank is negotiating with fintech companies, with fees potentially starting as early as October. Plaid, a major player, could face $300 million in annual fees.
• Open Banking Context: The situation is complicated by the potential demise of the “open banking” rule, which mandated free data access. JPMorgan’s CEO has previously criticized regulations in this area.
• Fintech Response: Fintech companies like Plaid argue that their data access practices are standard and beneficial to consumers. They also dispute JPMorgan’s claims of higher fraud rates.
• The Future: The outcome of these negotiations will determine the future of data access in the fintech ecosystem, potentially impacting the cost and availability of financial services.

For more details, you can read the original article on CNBC: [Insert CNBC Article Link Here]