Fintech middlemen like Plaid are ‘massively taxing’ its systems

JPMorgan Chase These Fintech Aracı – companies that help new generation financial applications are connecting with traditional check accounts – filling the bank’s systems with unnecessary data demands.

A JPMorgan Systems employee wrote to the retail payment chair in an internal note last week, “collectors access customer data several times a day,” Melissa Feldsher. “These access requests are largely taxed our systems.”

According to the note seen by the CNBC, in June, JPMorgan’s systems hit 1.89 billion data from the intermediaries, in June, JPMorgan’s systems hit the systems of JPMorgan, only 13% was traded by a customer for transactions.

He said that the majority of data shots known as API calls to help fintech companies to improve their products or prevent fraud, to other efforts, including the data of a person who refused to be defined in negotiations between JPMorgan and Fintechs.

JPMorgan, the largest US bank according to assets preparation To collect new fees for access to systems that intermediaries are increasingly costly. Negotiations between JPMorgan and FinTech intermediaries continue, but people with information on the subject may not start in October.

The Bank’s movement can lead to turmoil in the FinTech ecosystem, which develops as gatherers including plaid and plaid. Mx He associated traditional banks to newly arrivals. The API access was free for years and allowed intermediaries to make a profit from selling connections to FinTECH, which offered accounts and trade services and accounts.

The situation changed in May after the Consumer Financial Protection Office took action in support of A banking industry case to try to end the so -called “open banking” rule.

This rule, which resulted in the Biden Period in the diminishing months of this administration, compulsory Banks had to provide free data to the authorized parties. One week after the passage of the rule, JPMorgan CEO Jamie Dimon called bankers “fight“They were unfair regulations against what he said.

This month, JPMorgan plans to charge for customer data First reported by Bloomberg, JPMorgan’s “anti -competitive, offensive capital investors from Fintech and crypto executives, who are contrary to competition, have led to charges. rental Behavior “by putting payment walls on customer data.

However, JPMorgan says the infrastructure required for the increase in volumes and the increasing costs of protecting the allegations of fraud in connection with the payments made at the Fintech ecosystem.

According to the note, the total volume of API calls received by JPMorgan has increased more than twice the last two years.

According to the note, if the transactions containing the money sent through electronic ACH transactions contain data intermediaries, the probability of causing fraud claims is 69% higher.

JPMorgan, the bank expects to go to double in 5 years, a figure, which is a figure, which was initiated through collector Ach transactions saw allegations of fraud.

Among the 13 Fintech companies watched in the bank’s note, more than half of June came from a single company with a request for 1.08 billion API. Although it is not called companies, CNBC learned that the largest player represented in data is the plaid.

JPMorgan’s data show that only 6% of Plaid’s API calls were initiated by customers.

Recommended fee programs distributed by JPMorgan may result in eco payment 300 million dollars According to the Forbes report, new yearly fees.

The rest of the companies watched in the JPMorgan document are much smaller; The other only four intermediaries called for more than 100 million APIs per month.