WASHINGTON–At the same time the nation’s largest bank said it intends to charge fintechs every time they access its customers’ data, more than 80 leaders of fintechs and crypto companies have sent a public letter asking President Donald Trump to prevent banks from charging “account access” fees when consumers connect their accounts to financial products.
The letter, which was sent on behalf of the Financial Technology Association (FTA), called the move by JPMorgan Chase to charge for customer data anti-competitive and a threat to consumer choice.
The CU Daily has coverage of JPMorgan’s plans and what it said about the number of data requests it is receiving from fintechs here.
In a letter to the White House, the group warned that big banks are preparing to impose “exorbitant” account access fees in September that would make it harder for consumers to connect their bank accounts to third-party financial services. The signatories argued the move would undermine a longstanding principle that consumers own their account data and can share it with trusted applications acting on their behalf.
‘Choke Off Competition’
The letter said the banks’ efforts are designed to preserve their market dominance and could choke off competition in three fast-growing areas: cryptocurrency, artificial intelligence and digital payments. The fintechs further said the restrictions would sever essential links between banking systems and digital assets, limit the potential of AI-powered financial tools, and stifle low-cost payment innovations for small businesses.
Calling the plan “an anti-competitive move designed to consolidate power,” the leaders said it would force some financial tools and small firms to shut down entirely, while increasing reliance on legacy payment networks. They emphasized in the letter that account access fees are not permitted under current law.
Praise for Administration
The group praised the administration’s efforts to foster a “21st-century economy” and lead in digital assets, AI and financial innovation, but said those gains are at risk unless the administration acts to stop the banks.
“This is a defining moment,” the letter concluded. “Account access and data belong to the customer. We cannot allow the most powerful, entrenched banks to close the door on a more open and modern financial system.”
