In a leaked internal memo seen by CNBC JPMorgan has stated it will begin charging middlemen for access to API calls. They cite that 1.89 billion data requests from middlemen hit their systems in June and only 13% were initiated by the customer. Other requests were used to prevent fraud, help fintechs improve their products or harvest data for sale. Plaid is said to account for 1.09 billion of these requests.
Financial institutions have long provided this information for free, the CFPB under the Biden administration announced ‘open banking rules’ that would codify this access. JPMorgan urged bankers to fight back against this access and the CFPB under the Trump administration asked courts to vacate the open banking rule
JPMorgan is currently in discussion with these fintechs/middlemen and say that charging could begin as early as October.
I think a sensible middle ground should be able to be reached here with fintechs not having to pay for requests that are either customer initiated or designed to prevent fraud but having to pay for requests that harvest data or help improve their own products. Somehow I doubt that compromise will be reached.
Good. And nothing of value was lost
Pulling off the reddit move. I don’t like it, but I don’t see why they can’t do it. They have the data and provide the service, so they can do what they see fit.
Hopefully Chase doesn’t charge for API calls for budget programs. The feedback mechanism to prevent this would be that customers might avoid Chase so they can continue using their budgeting programs. Write to your local branch lol
I closed all my PenFed accounts because of exactly this.
RIP to any free budgeting programs that still existed. And paid ones will likely double or triple in price.
Or they just drop support for Chase. Which I wouldn’t even mind after all their recent enshittification…I have half a mind to drop them too.
Maybe, we’ll see. Fidelity dropped Plaid support for some time last year in favor of Akoya – a paid alternative. Months later Plaid support mysteriously returned.
I have linked Chase with my accounting software. I need them to have access to all my transactions.
I don’t see why not. Everyone is having my data, more than what I wanted for. Banks want my whole statements and transaction history to link to them (looking at you fincity)
I use Empower (formerly Personal Capital) as account aggregation for my net worth analysis/history, so I hope they are still going to be able to show Chase accounts going forward since Empower is a free service.
The irony is that Chase themselves offer an “external accounts” feature on their site that allows you to pull transactions from other banks when logged in to your Chase account. I use it, although I don’t remember what tool (external or internal to Chase) was used when I added my external accounts there. So, Chase is a “victim” in this case… but also a perpetrator ;-/
William or DoC, Chase looks to be taking over the Apple Card.
https://www.wsj.com/finance/banking/jpmorgan-chase-nears-a-deal-to-take-over-apples-credit-card-program-0bbcdda8
This might be of interest to all the Apple Card holders and Chase credit card readers.
My guess – they will reissue as Visa to allow more international use of the card.
Thanks, posted now,
For verification/linking account, no reasons for banks to get transaction data at all! Name and account number should be good enough.