Friday, 10 Oct 2025
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA
logo logo
  • World
  • Politics
  • Crime
  • Economy
  • Tech & Science
  • Sports
  • Entertainment
  • More
    • Education
    • Celebrities
    • Culture and Arts
    • Environment
    • Health and Wellness
    • Lifestyle
  • 🔥
  • Trump
  • VIDEO
  • House
  • White
  • ScienceAlert
  • Trumps
  • Watch
  • man
  • Health
  • Season
Font ResizerAa
American FocusAmerican Focus
Search
  • World
  • Politics
  • Crime
  • Economy
  • Tech & Science
  • Sports
  • Entertainment
  • More
    • Education
    • Celebrities
    • Culture and Arts
    • Environment
    • Health and Wellness
    • Lifestyle
Follow US
© 2024 americanfocus.online – All Rights Reserved.
American Focus > Blog > Economy > Fintech middlemen like Plaid are ‘massively taxing’ its systems
Economy

Fintech middlemen like Plaid are ‘massively taxing’ its systems

Last updated: July 28, 2025 2:00 pm
Share
Fintech middlemen like Plaid are ‘massively taxing’ its systems
SHARE

JPMorgan Chase, one of the largest banks in the United States, is facing a challenge from fintech middlemen who are overwhelming the bank’s systems with unnecessary data requests. These middlemen, such as Plaid and MX, have been instrumental in connecting new financial apps with traditional checking accounts. However, JPMorgan has raised concerns about the frequency of data access requests from these middlemen.

According to an internal memo seen by CNBC, out of 1.89 billion data requests received by JPMorgan in June, only 13% were initiated by customers for transactions. The majority of requests were for purposes such as product improvement, fraud prevention, and data harvesting for resale. As a result, JPMorgan is preparing to charge these middlemen for access to its systems, citing the increasing costs of maintaining infrastructure.

The move by JPMorgan to charge for customer data access could potentially disrupt the fintech ecosystem, which has thrived on free API access for years. The situation escalated in May when the Consumer Financial Protection Bureau supported a banking industry lawsuit to end the “open banking” rule, which mandated free data access for authorized parties. JPMorgan CEO Jamie Dimon has been vocal about challenging what he views as unfair regulations.

The surge in data volumes and associated costs have prompted JPMorgan to reconsider its approach to data access. The bank has reported a significant increase in API calls over the past two years, with transactions involving data middlemen being more susceptible to fraud claims. JPMorgan estimates that fraud claims from ACH transactions initiated through aggregators could triple within 5 years.

See also  Alexa von Tobel has high hopes for ‘fintech 3.0’

Plaid, one of the largest players in the data access space, has defended its practices, stating that all activity begins with customer authorization. The company argues that calling a bank’s API when a user is not present is a standard industry practice for providing alerts and monitoring account activity. Plaid has also disputed JPMorgan’s claims of higher fraud rates among aggregators.

Negotiations between JPMorgan and the middlemen are ongoing, with proposed fee schedules potentially costing companies like Plaid up to $300 million in annual fees. The outcome of these discussions will likely shape the future of data access in the fintech industry.

As the debate over data access fees continues, both sides are working towards a new reality that is acceptable to all parties involved. Productive conversations have taken place, with the acknowledgment that changes may be necessary to align call volume with the costs associated with data access. The outcome of these negotiations will have implications for the broader fintech ecosystem and the future of open banking.

TAGGED:fintechmassivelyMiddlemenPlaidSystemstaxing
Share This Article
Twitter Email Copy Link Print
Previous Article The world’s highest court bolstered the fight for climate reparations The world’s highest court bolstered the fight for climate reparations
Next Article Fake rideshare driver is sexually assaulting women in Gold Coast, Old Town: CPD Fake rideshare driver is sexually assaulting women in Gold Coast, Old Town: CPD
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Popular Posts

Why Jamie Dimon is right about meetings

Unlock the Editor’s Digest for free Roula Khalaf, Editor of the FT, selects her favourite…

April 20, 2025

Ice Cube’s War of the Worlds Film is a Trainwreck. I’m Obsessed

There is a severe lack of realism in this adaptation, with Ice Cube's character seemingly…

August 11, 2025

Turmeric’s Unexpected Benefits, According to Doctors

The Multifaceted Benefits of Turmeric: From Kitchen to Skincare The Multifaceted Benefits of Turmeric: From…

September 27, 2025

REPORT: Los Angeles Spends More on the Homeless Than Firefighters and the Homeless Start One-Third of Fires |

Screenshot: ONSCENE.TV The onset of wildfires in California this year has cast a glaring light…

April 16, 2025

Forest Service firings decimate already understaffed agency

Marie Richards, a tribal relations specialist at the Huron-Manistee National Forests, recently found herself among…

February 27, 2025

You Might Also Like

When Godzilla Breaks Windows
Economy

When Godzilla Breaks Windows

October 10, 2025
Peter Schiff Describes Bitcoin’s Jump Over 6,000 As ‘Bear Market Rally’: ‘Too Early For Bitcoiners To Get Excited…’
Economy

Peter Schiff Describes Bitcoin’s Jump Over $126,000 As ‘Bear Market Rally’: ‘Too Early For Bitcoiners To Get Excited…’

October 10, 2025
Veteran analyst drops sharp take on GTA 6 hype
Economy

Veteran analyst drops sharp take on GTA 6 hype

October 10, 2025
Nvidia’s Jensen Huang Says AI Demand Is Up ‘Substantially’ This Year, and Still Growing
Economy

Nvidia’s Jensen Huang Says AI Demand Is Up ‘Substantially’ This Year, and Still Growing

October 10, 2025
logo logo
Facebook Twitter Youtube

About US


Explore global affairs, political insights, and linguistic origins. Stay informed with our comprehensive coverage of world news, politics, and Lifestyle.

Top Categories
  • Crime
  • Environment
  • Sports
  • Tech and Science
Usefull Links
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA

© 2024 americanfocus.online –  All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?