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JPMorgan says fintech middlemen like Plaid are ‘massively taxing' its systems with unnecessary pings

1. JPMorgan plans to charge fintech middlemen new fees for data access. 2. 1.89 billion data requests in June; only 13% initiated by customers. 3. Bank's infrastructure costs are increasing due to rising API call volumes. 4. JPMorgan faces accusations of anti-competitive behavior amid fee negotiations. 5. Fraud claims from aggregators expected to triple within five years.

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FAQ

Why Bullish?

The introduction of fees for data access can lead to higher revenue streams. Historical precedent, such as banks charging for wire transfers, shows how fee structures can bolster profitability.

How important is it?

The article discusses JPMorgan's strategic shift in dealing with fintechs, directly impacting its revenue potential and operational costs.

Why Long Term?

New fee structures will take time to implement but should stabilize revenue in future quarters. Historical adjustments in similar markets usually require time for full market transition and acceptance.

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