During the IMF and World Bank meetings in Washington, D.C., JPMorgan Chase CEO Jamie Dimon discussed challenges the bank faces due to fintech intermediaries. JPMorgan reported a dramatic increase in data requests, with 18.9 billion API calls in June alone, but found that only 13% were initiated by customers. These requests, crucial for fintech companies to improve services and combat fraud, are straining JPMorgan’s systems.
In response, JPMorgan is considering implementing new fees for intermediaries, potentially starting in October, as the bank grapples with rising maintenance costs and an increase in fraud linked to fintech transactions. This follows a shift in regulations where the Consumer Financial Protection Bureau (CFPB) has moved to limit “open banking” rules that previously required free data access for certain parties.
Fintech platforms like Plaid, which generate considerable API traffic, dispute JPMorgan’s claims, arguing they provide essential services and that increased data access reflects consumer demand. The discussions between JPMorgan and these companies hint at a possible reconfiguration of data sharing in the financial ecosystem, depending on the outcome of legal challenges to current regulations.
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