JPMorgan Chase To Set Charging Fintechs For API Calls

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.