JPMorgan Chase, ‘Crude’ Crypto and Fintech Startups are spreading a new payment structure that can warn managers



When JPMORGAN CHASE Last month, Fintechs said that the customer plans to accuse them of accessing bank account information, which sent shock waves through the corners of the financial industry. According to four industrial leaders, the movement is a blow to the Fintech sector and the crypto industry can be devastating to early steps, including those in the industries. Think of analysts, paypal and mature fintechs like and Block Most likely, this will be more than a change of payment.

Under the plan, each time a consumer transfers money from a third-party service like a cryptoralgan or coinbase from JPMorgan, bank data collectors can pay a fee. This would be economically impossible for many consumers to use stablecoins and cryptist, and in the executor of three industrial executives refused to talk about the fear of revenge. “This would complain about the cryptist sector,” he said.

Payments are expected to be heavy for a large number of early steps. Fortune. One Fintex estimated that JPMorgan’s API’s accession to the API will be more than a 10-year availability. “It would be out of work … Everyone would require to pay (value) to increase the prices to 1000%,” he said.

Crypto firms and fintechs, usually using aggregators like Plaid or MX, to access customer accounts in basic financial institutions such as JPMorgan Chase. So far, banks have not accused Fintechs, but it can change.

“JPMORGAN fees, if you are a small company, it makes it impossible to serve followers,” he said.

Alex Rampell, a General partner Andreessen Horowitz, in Venture, said X Tuesday Fintechs charging plans for JPMorgan’s customer information are not related to a new income stream. Related to the suffocation of the competition. If they go away from this work, each bank will follow. ”

JPMorgan Chase is a $ 800 billion company, the usual Rampell, approved Rampell, now lending after a purchase. JPMorgan’s new fee plan can be very expensive to invest in Crypto. “If suddenly costs $ 10 to move to $ 10 Siknbase Or a Roberyholitor account, fewer people can do it, “he said.

Krake’s CEO of Kraken, one of the largest crypto exchanges in the United States, said he did “calculated action” with plans to pay payments. The largest bank of the speaker is created by consumers and provides “confirming property rights in the infrastructure managed by JPMorgan Tuesday side X.

“It’s not a technical innovation. It is paid,” Sethi said. “And once the information becomes income for infrastructure provider, encourage, lock it, lock it, lock it and sell it in the margin.”

Jpmorgan, the largest bank of Mallin 91 million consumer accounts spread to different segments. The bank is likely to have approximately 20 million checks in the United States, a Bernstein Research Analyman Harsita Rawat on July 14 Research Record

JPMorgan said that the aggregators would start charging payments to access customers’ bank account information. Bloomberg declareHowever, it is not known how much the bank is planning to charge.

“We have created an important source for creating a valuable and reliable system that protects customer information.

As for more adult fintecs as the owner of the cash app, analysts will face contracts with the largest banks, including other relations and processing, including duties with the largest banks. “PayPal and block are likely to be exposed to (or manageable) in the data set, probably” Rawat. (Aggregates provide technology like API, which allows consumers to connect financial accounts to an application or service.)

Some think that this positive picture is ahead of time. The second executive power said that it depends more than the size of the payments. “The effect can be very big,” he said.

Dimon Fintechs Wary

Jamie Dimon, the most influential banker in JPMorgan Chase’s CEO and Wall Street, drew the origin of the origin of Fintechs. Dimon, during an analyst call in January 2021, said that the current banks should be “Scary sh ** little“The growing competition created by Fintechs. Dimon, Fintechs said he was waiting for” very harsh, cruel competition in the next 10 years. ”

“I expect to win, God help me.” At the same time, Dimon has a widely used service, which helps consumers close applications such as Venmo to the bank accounts, “People who use them properly as a plaid”.

Dimon, in the annual stock letter published In April, he warned that the fight with the aggregators of the third party was “dumping”. JPMorgan Chase does not have a problem sharing customer information, but if it ends, Dimon said in the letter. According to him, customers must allow any sharing of their data. They should also know what information is and how and how. “Third parties want banks to complete access to customer information, so they can use it for their goals and interests,” he said.

It continued this dispute JPMORGAN’S CALL OF GETTER Tuesday. Customers have the right to share information, but the data must be the time limit. He said that the data should not be reworked or retreated to third parties. “And then the payment is simply spending a lot of money to build APIs and items to protect the system. Thus, this is not like this. It’s not like this. You can’t do it.”

Skeptics, doubt to protect consumers, ensure the main concern of JPMorgan when it comes to Fintechs. Instead, build a moat around the products and services of large banks, according to consumer management services, for information for information for access to competition services, consider charging payments. “Banks have invested a lot of money to build offers. But the Fintechs lay a lot of money to build technology,” said an exec.

Payments will raise expenses for consumers, restrict financial options when looking at innovation, and the second executive said. “It will kill the innovation and consumer choice,” he said.

Aggregators like Plaid, Yodlee, Fatity and MX will first feel the best feeling of these changes. Consumers trust aggregators to share data and combine their accounts with Fintech applications. For example, plaid, RobinFolit, Citi, missile mortgage and including 7000 customers Tease. They use Plaidin API to join more than 12,000 financial institutions, including banks and Fintechs, JPMorgan Chase and PayPal.

Plaid in 2018 signed An agreement with JPMorgan by the safe API connection, which allows Chase’s customer information. Since then, JPMorgan Chase has never been filled with consumer information, explained by one person who is familiar with the situation Fortune. Plaid, however, is expenses to manage security, technology and compatibility related to the protection of API integration. JPMorgan also conducts customers to Platidin’s network and conducts daily security reviews, the person said.

In contracts with aggregators, JPMorgan reserved the right to accuse the information, a second person who met the situation. The bank also wants to promote access to more responsible information. Every month, JPMorgan usually receives a 2 billion data request to get customer information – aggregators. However, 90% of these data are not actively looking for customer information, the second person.

About three weeks ago, in late June, JPMorgan informed all the unit customers who need to start paying API. The first fees will start triggering in late August. Expenses of aggregators – are expected to pass through everything they want.

Other banks are expected to follow JPMorgan’s leadership. PNC is one of the largest consumer banks of the nation, as well as Fintechs charging to access customer information. “I welcome the JP,” said Demchak, Chairman and General Director of PNC, CEO gain Call on Wednesday.

“I think the JPMorgan is exactly. I think it’s a great cost to ensure the security of this information and produce in a form of readiness for our customers. We are thinking about it,” he said, “he said.

The condition of other banks is not clear. Citi is one of the largest consumer banks of the nation. There are more than 200 million customer accounts around the world. Until June 2 Bank of America service 69 million US consumers and small business customers. Wells Fargo It is also a large consumer bank, but does not disclose information about their accounts. Citi refused to comment, the Boofa and the wells could not be obtained for comments.

The end of “Open Banking”?

It is no coincidence that JPMorgan’s rights change CFPB’s open bank rule remains unresolved. The law was previously started in the first period of President Trump. This is the consumer’s financial defense bureau or CFPB, in October, in October, the Biden administration ended. Open Bank Rules or Rule 1033It makes consumers easier to pass between financial services. In addition, banks also require sharing other loans or free sharing with financial services. A day of the agency, two banking lobbies, bank policy institutes and Kentucky Bankers Association in a day claim CFPB has exceeded the regulator. (Dimon chairman Of the Institute of Bank Policy.)

CFPB is accused of protecting consumers in the financial market. Agency detained by Trump Administration now whole In May, a move for a summary decision, the Kentucky Provincial Court to empty the open bank rule. CFPB, as a rule, “illegally and should be set aside” Court claim.

JPMorgan Chase exploits the uncertainty to call the “penalty tax on competitive sacrifices,” said Steve Boms, FDATE, Financial Information and Technology Association. “This is an open effort to reduce financial services and shaken a stronger American financial system.

This story was clear to say that JPMorgan’s data set will begin to launch payments to access customers’ bank account information.



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