More than 80 leaders of FinTech companies, crypto companies and other firms involved with open banking signed a public letter asking President Donald Trump to prevent banks from charging “account access” fees when consumers connect their accounts to financial products.
“This is not a dispute over fair pricing; it is an anti-competitive move designed to consolidate power,” the business leaders said in the letter, which is dated Wednesday (Aug. 13) and was posted online by the Financial Technology Association. “It threatens to cripple innovative products and may cause small businesses and financial tools to shut down entirely.”
The letter said “account access” fees would limit the access to consumers’ and business’ finances that is needed to support the operations of cryptocurrency companies, financial artificial intelligence (AI) assistants, and digital wallets and payments.
“This access is critical to ensuring Americans have control of their own financial lives in a digital economy,” the letter said. “More fundamentally, [banks] are advancing a dangerous legal interpretation that a consumer’s right to their account information does not include the freedom to share access to a trusted application acting on their behalf.”
It was reported July 11 that JPMorgan told FinTechs it will begin charging for access to customer bank data.
The bank sent pricing sheets explaining the new charges to data aggregators that connect banks and FinTechs.
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A spokesperson for JPMorgan told Bloomberg in July that the bank has invested heavily to develop a system that protects consumer data.
“We’ve had productive conversations and are working with the entire ecosystem to ensure we’re all making the necessary investments in the infrastructure that keeps our customers safe,” the spokesperson said.
JPMorgan CEO Jamie Dimon wrote in an annual letter to shareholders released in April that “a new battle is brewing” over third-party access to banks’ customer data.
“Contrary to what you may read, we have no problem with data sharing but only if it is done properly,” Dimon wrote. “It must be authorized by the customer — the customer should know exactly what data is shared and when and how it is used; third parties should pay for accessing the banking system and payment rails.”
In their Wednesday letter to Trump, the FinTech and crypto business leaders said: “With these fees set to impact the market in September, the White House should act immediately. Account access fees are not permitted under the law, and if they are allowed to go into effect it will undermine the pro-innovation consensus your Administration is building.”
