JPMorgan Chase and Plaid Extend Data Sharing Agreement

JPMorgan Chase and Plaid have renewed their data sharing partnership, allowing JPMorgan Chase customers to securely connect their bank accounts to various financial applications.

This renewal addresses key concerns around data security, cost, and control that have been debated among banks and fintech companies.

Key Takeaways:

• Continued Access: JPMorgan Chase customers can continue using budgeting tools, payment systems, and investment platforms that rely on Plaid's data connections.
• Pricing Structure: The agreement includes a pricing model for data access, a departure from the previous fee-free arrangement.
• Investment in Technology: Both companies commit to investing in technology to enhance data access and security.
• Regulatory Scrutiny: The Consumer Financial Protection Bureau (CFPB) is revisiting regulations on consumer data sharing, potentially impacting future agreements and open banking rules.

Data Sharing Debate

The topic of consumer data sharing has been a point of contention in the financial industry. Banks like JPMorgan Chase have expressed concerns about third parties accessing and monetizing customer data without compensation. This renewal seems to provide a framework for fair compensation while ensuring data security.

The CFPB's review of open banking rules could significantly affect how financial institutions share data and whether fees are permissible.

What the Executives are Saying:

Melissa Feldsher, JPMorgan Chase's consumer payments head, emphasized the importance of the partnership for ensuring secure and quick access to financial data for customers.

Eric Sager, Plaid's COO, highlighted that the agreement secures ongoing access for millions of Chase customers who use Plaid to connect to their preferred financial services.

Experian and Plaid also partner.

In June, Experian and Plaid also joined forces to improve credit decisions by using cash flow data and traditional credit analysis.