WASHINGTON/NEW YORK (Reuters) – JPMorgan Chase & Co (JPM.N) has told financial technology companies that they will be barred from accessing its customer information by July 30 if they do not sign data access agreements with the bank and agree to a plan to stop using customer passwords to gather the data.
FILE PHOTO: A J.P. Morgan logo is seen in New York City, U.S. January 10, 2017. REUTERS/Stephanie Keith/File Photo
The largest U.S. bank by assets set the new deadline in a letter sent to the companies in late January, in which it also said they must agree a “concrete plan” to transition to a new method of collecting customer data, according to two people familiar with the matter.
Otherwise, JPMorgan will block all automated access to the data, including through so-called screenscraping, or the process of collecting data from one application to use it in another, the people said.
A JPMorgan spokesman confirmed the contents of the letter and said the company already has agreements with more than 95 percent of companies that request data access.
The deadline is the latest move in the bank’s effort to transition fintechs and data aggregators to what it has said is a more secure way of accessing customer data.
Fintech startups, such as those that offer budgeting apps or digital wealth management, usually connect to a user’s bank account to gather the necessary data to provide their services. Some gather the data through aggregators such as Visa Inc (V.N) -owned Plaid or Yodlee, while others request that customers provide their password.