JPMorgan secures deals with fintech aggregators over fees to access data, CNBC reports

(Reuters) -JPMorgan Chase has secured deals that volition guarantee it receives payments from fintech companies for entree to its lawsuit slope relationship information ​by third-party apps, CNBC reported connected Friday, citing sources acquainted with ‌the matter.

The agreements were struck with information aggregators including Plaid, Yodlee, Morningstar and Akoya, Drew Pusateri,‌ a JPMorgan Chase spokesperson, told Reuters.

Data aggregators are intermediaries who nexus banks with fintech firms. They antecedently accessed lawsuit relationship information from banks specified arsenic JPMorgan without paying for it, enabling fintech apps to connection services similar budgeting and payments - an statement that drew ⁠criticism from lenders acrophobic astir information ‌security and just compensation.

"The escaped marketplace worked. After productive conversations with our aggregator and fintech partners, we've travel to agreements that ‍will marque the unfastened banking ecosystem safer and much sustainable - and let customers to proceed reliably and securely accessing their favourite fiscal products," Pusateri added.

The deals travel weeks of talks betwixt ​the largest U.S. slope and the aggregators, with JPMorgan agreeing to a ‌lower interest than initially projected and fintech intermediaries securing concessions connected however information requests are handled, the CNBC study added.

The Consumer Financial Protection Bureau's (CFPB) "open banking" rule, introduced past twelvemonth nether the Biden administration, acceptable standards for information sharing betwixt fintechs and banks, enabling consumers to determination idiosyncratic fiscal information betwixt providers astatine nary ⁠cost.

Banks, facing imaginable losses, swiftly criticized the ​rule, arguing it risked user information information and ​overstepped the agency's authority, portion fintech firms welcomed it, saying it would alteration unafraid sharing of user data.

The CFPB kicked disconnected a do-‍over of its "open ⁠banking" regulations successful August, amid nationalist unit from fintech firms and crypto entrepreneurs.

The Trump medication had initially sided with a banking manufacture telephone to scrap the ⁠regulations entirely, claiming they exceeded the agency's ineligible powers, earlier changing tack earlier successful the year,‌ citing "recent events successful the marketplace."

(Reporting by Pritam ‌Biswas successful Bengaluru; Editing by Maju Samuel)