In a bold and controversial move, JPMorgan Chase has begun slapping massive new fees on fintechs for accessing consumer banking data—charges that could fundamentally reshape the financial technology landscape.
For years, fintechs have relied on consumer data from traditional banks to power services like money transfers, budgeting, and investment tracking. Companies like Plaid and MX have built billion-dollar businesses by acting as bridges between banks and up-and-coming financial apps. Historically, banks—including JPMorgan—provided this data access for free.
Not anymore.
After the Consumer Financial Protection Bureau’s open banking rule was effectively sidelined by the Trump administration in May, JPMorgan seized the moment. The bank has now sent out pricing sheets to data aggregators, demanding steep fees—especially for payment-related data. According to internal estimates, Plaid alone could owe JPMorgan more than $300 million a year under the new structure, a sum that would wipe out much of its 2024 revenue.
JPMorgan says it’s simply trying to recoup the cost of servicing nearly 2 billion monthly data requests, many of which, it argues, are unnecessary. “More than 90% of those requests aren’t even tied to actual consumer fintech activity,” said JPMorgan spokesperson Drew Pusateri. “These new fees are about accountability and transparency.”
Fintechs, however, are calling foul. Miranda Margowsky from the Financial Technology Association accuses the bank of “crushing competition” and erecting barriers to innovation. Sima Gandhi, an early Plaid employee, offered a compromise: let consumers opt in to a premium data-sharing tier, akin to Apple’s iCloud model. JPMorgan says it has no such plans.
With the door opened by deregulation, other banks are now eyeing similar moves. PNC’s CEO has already hinted at charging for access. If that happens across the board, the cost of doing business for fintechs could skyrocket, forcing smaller players out and possibly eliminating free or low-cost features for consumers.
The showdown is still in early innings. Negotiations are underway, led by JPMorgan executive Allison Beer. Some suspect the bank is opening high to leave room for compromise—a Trump-style “art of the deal” strategy. Whether that strategy succeeds, or sparks regulatory backlash, remains to be seen.
What’s clear is this: the gloves are off. The data-sharing détente between banks and fintechs is over, and the battle for control over consumer financial data has officially begun.