Finttech Middlemen like Plade ‘are levied on its system’ greatly taxed ‘on its system
On Thursday, October 24, 2024, at the annual meeting of Washington, DC, IMF in the US and the World Bank, Jammy Dimon, IMF and World Bank, CEO of JP Morgan Chase and Company.
Kent Nishimura | Bloomberg | Getty
JP Morgan Chase Fintech Middlemen said – companies that have connected new generation of financial apps to traditional inspection accounts – the bank’s system is flooded with unnecessary data requests.
The employee of JP Morgan Systems wrote to the retail payments head in the last week, “Consumers are entering customer data several times daily,” even though the customer is not actively using the app, ” Melissa Feller. “These access requests are levying a lot of tax on our system.”
According to CNBC’s memorandum, only 5 % of the customers of the BY 1.89 billion -statistics requests to kill the JP Morgan system in June to the JP Morgan system were started for transactions.
Pulling most data known as API calls, helping fintech companies to improve their products, or prevent other efforts with deceiving other efforts to sell, a person with the knowledge of the JP Morgan and Fintech.
The largest US Bank is JP Morgan according to the property Preparation Charging a new fee of the middlemen in which he says to enter the system that he says that there are growing expensive for maintenance. The negotiations between the JP Morgan and the Finch Middlemen are ongoing, but the new fees could be started in October, said people who know the matter.
The bank’s decision could lead to reversal in Fintech Ecosystem, which increased as a combination Plaid And Mx Connecting traditional banks with new arrival. API admission was free for years, which could make Middlemen a profit from selling connectivity to Fintech that offered accounts with no fees checking or trading services.
Customer Financial Protection Bureau changed in May after filing a proposal In support of Banking industry Prosecution Trying to end the so -called “open banking” rule.
Those rules, in the invisible months of that administration, the Biden-Yuga CFPB finalized, Unnecessary Those banks had to provide free data to the authorized parties. After a week of the passage of the rules, the CEO of JP Morgan Jamie Dimon To call the bankers ”Fight back“There was an inappropriate rule against what he said.
Surging volume
News that JP Morgan is planning to charge for data this month, Bloomberg first reported, Venture Capital Investors and Fintech and Crypto Officers were accused of being involved in JP Morgan “anti -competitive,”. Deduction Behavior “by placing pawall on customer data.
But JP Morgan says the increasing costs for maintaining the infrastructure needed for the growth of volume, as well as the advanced fraud claims related to the payments made in the fintech ecosystem.
According to Memo, the total number of API calls received by JP Morgan has doubled in the last two years.
According to Memo, a deception claims to be a fraudulent claim if data involved in a transaction involved in electronic AR transactions.
JP Morgan saw the claims of about $ 50 million from ACH transactions launched by Agreegators. The bank is expected to triple within 5 years, Memo said.
Of the 13 fintech companies tracking in the bank’s memo, 1.08 billion API requests came from more than half of June. Although not the name of the companies, the CNBC has realized that it is the largest player represented in the data Plaid??
JP Morgan statistics have shown that only 6% of the Plaid API call was started by customers.
Plaed Co-Founder William Hockey and Zak Perete
Source: Plared
Admit
In a statement to CNBC, Plaid said that this figure “misunderstand how data access works” because when consumers sign up for accounts, all activities start when consumers have fintech companies. Of course, many customers do not carefully read the long “Terms and Conditions” pages with data-communication revelations before opening new accounts.
“Calling the bank’s API when the user authorized the connection when the user authorized the connection, all the major banks have a standard industry practice to get serious alert for overdraft fees or suspicious activities,” Plaid told CNBC.
Plaid also said that the claims of high fraud in those who assemble JP Morgan were “misleading”, though it did not expand.
Plaid said, “It is not surprising that the amount of data access is increasing with the demand of customers, which is increasing with the demand of the intelligent, fast and their needs,” Plaid said.
“Clearly, we believe that data sharing ecosystem customers, fintech developers and financial institutions need to work for everyone – many of them take advantage of open banking in their own products,” the company said.
Played may be due to the proposed fee schedule transmitted by JP Morgan Million 300 million In the new annual fee according to the Forbes’ report.
The remaining companies tracking in the JP Morgan document are very small organizations; Only four other Middleman registered more than 100 million monthly API calls.
The spread of bid-thinking
If the Biden “Open Banking” rules are brought down by the courts, the main question is whether the mediators will have to pay for data, but how much they have to pay.
This is a private process between JP Morgan and The Middlemen, which is moving from a public point of view to reach the new reality of all.
JP Morgan has made productive conversations with a lot of data that confesses that if they are no longer free, the way of removing data can be changed, according to the person with the knowledge of negotiations.
“I think both sides are fully confessed that they are a few things that can make the right size call volume.”
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