While JPMorgan’s decision to charge for data access may not be unreasonable, it did catch many by surprise. The bank argues that aggregators are profiting from its infrastructure without contributing value in return. Citing rising infrastructure and security costs, as well as a desire for greater control over how consumer data is accessed and used, JPMorgan framed the move as a necessary step toward a more balanced data-sharing ecosystem. For data aggregators, the news is far from welcome. As one spokesperson noted, their cost of goods sold has essentially been zero. They charge fintechs for data access but haven’t had to pay banks to obtain the data itself. If banks like JPMorgan begin charging for that access, aggregators will likely pass the added costs to fintechs, which could ultimately trickle down to consumers. JPMorgan’s announcement comes at an interesting time for open banking in the US. Section 1033 of the Dodd Frank Act was supposed to be finalized this October, and many were looking forward to the clarity that centralized open banking rules would provide the industry. Earlier this year, however, the CFPB announced plans to rescind 1033. Regardless of whether or not formal rules are in place, however, the argument centralizes around an age-old question in fintech–who owns the customer data? While many banks claim that the consumer data belongs to them, some advocacy groups and aggregators claim that consumers should be able to do what they want with their data freely. Introducing new costs to access consumer financial data could have several ripple effects on the future of open banking in the US:
- It may create barriers for fintechs offering services that consumers can’t get from traditional banks. This could slow innovation and reduce incentives for new entrants to build products that meet unmet financial needs.
- Consumers may face higher costs as fintechs pass on the fees associated with data access. Services that were once free or low-cost could become more expensive, prompting some users to reconsider their primary financial institution if their bank can’t match the functionality they previously enjoyed via third-party apps.
- It could accelerate the adoption of more secure, standardized data-sharing protocols, such as those developed by the Financial Data Exchange (FDX), which aim to replace legacy methods like screen scraping with tokenized, API-based access.
- It might also incentivize more screen scraping, as aggregators seek ways to avoid new costs. While most aggregators treat screen scraping as a last resort, increased financial pressure may push some to lean more heavily on automated tools such as AI agents to extract data through less secure channels