rewrite this title JPMorgan’s Data Access Agreement: Plaid’s Perspective – Finovate

Late yesterday, JPMorgan Chase and Plaid announced that they have mutually agreed to renew their data access agreement that dictates how Plaid is able to pull data on their shared customers from JPMC.

The renewed agreement’s most notable feature is a new pricing structure. Plaid will now pay JPMC to facilitate data access for its fintech clients. Aside from the financial terms, the deal also sets commitments from both sides to ensure consumers can access their data securely. Additionally, the firms have pledged joint investment in innovation and technology to make data sharing faster, safer, and more efficient.

Plaid’s take

Since JPMC initially signaled in July that it plans to charge aggregators to access consumer data, there have been many conversations on both sides of the debate regarding why or why not banks should charge for data access. Given the multiple stakeholders involved, including banks, fintechs, aggregators (like Plaid), and end consumers, there are multiple viewpoints on what charging for data access should look like.

As a central player in this debate, Plaid has a lot to lose (or win) depending on how fees are assessed. To that end, Plaid COO Eric Sager emphasized the firm’s willingness to collaborate with JPMC to preserve the consumer experience: “We have always believed consumers should have the right to access and share their own financial data, and JPMorganChase has been a partner in that effort,” said Sager. “This extended agreement ensures ongoing access for the millions of Chase customers who rely on Plaid every day to connect with the products and services they trust.”

To back up those assurances, Plaid outlined three key takeaways from the renewed agreement:

Continuity is guaranteedPlaid says existing JPMC customers can keep accessing fintech services without disruption.

No pricing changes for nowCurrent contracts and customer fees remain unchanged.

Advocacy continuesPlaid will keep pushing for consumer data rights in the CFPB’s 1033 rulemaking.

Regardless of the kumbaya moment, the conversation is far from over. Data access is only part of the equation. Nearly half of Plaid’s business is made up of account access for payments, such as Venmo and other payment initiation services, which are not addressed in this agreement. That leaves open questions about whether payment-related data will eventually carry its own fee structure, and how those costs might ripple through to fintechs and, ultimately filter down to consumers.

In the meantime, regulators are working to rewrite the 1033 rulemaking and many banks are seeking to monetize data flows. Given all of the moving and missing pieces, today’s deal between Plaid and JPMC looks less like a conclusion and more like a preview of the next stage in the battle over who pays when financial data changes hands.

Photo by Pixabay

Views: 77