Financial technology middlemen reportedly sent investment banking giant JPMorgan Chase 1.89 billion data requests in the month of June.
In an internal company memo reviewed by CNBC, a JPMorgan systems employee noted that only 13% of those requests were initiated by a customer for transactions.
“Aggregators are accessing customer data multiple times daily, even when the customer is not actively using the app. These access requests are massively taxing our systems.”
An anonymous source with knowledge of the memo tells CNBC that the requests often involve helping fintech companies bolster their products or stop fraud.
Earlier this month, JPMorgan informed fintech companies such as PayPal, Venmo and Coinbase that they will need to begin paying to access their customers’ bank account information, a move that sparked controversy in the digital asset sector.
Gemini co-founder Tyler Winklevoss claims the investment bank is attempting to sabotage fintech and crypto firms, accusing JPMorgan chief executive Jamie Dimon of trying to wreck President Donald Trump’s attempts to embrace digital assets.
“This will bankrupt fintechs that help you link your bank accounts to crypto companies like Gemini, Coinbase, and Kraken so you can easily fund your account with fiat to buy Bitcoin and crypto…
Jamie Dimon and his cronies are trying to undercut President Trump’s mandate to make America the pro-innovation and the crypto capital of the world. We must fight back!”
Dimon, however, defended the fee proposal during the bank’s second-quarter earnings call.
“So, this is very important. So forget pricing for a second, we are in favor of the customer, but we think the customer has the right to if they want to share their information. What we ask people to do is, what do they – do they actually know what’s being shared? What is actually being shared? It shouldn’t be everything. It should be what their customer wants. It should have a time limit because some of these things went on for years. It should not be re-marketed or resold to third parties. And so, we’re kind of in favor of all that, done properly.
And then the payment, it just costs a lot of money to set up the APIs (application programming interfaces) and stuff like that to run the system’s protection. So, we just think it should be done and done right. And that’s the main part. It’s not like you can’t do it.”
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The post Fintechs Flood JPMorgan With 1,890,000,000 Customer Data Requests, ‘Massively Taxing’ Bank’s Systems, According to Insider appeared first on The Daily Hodl.
