WASHINGTON/NEW YORK (Reuters) – JPMorgan Chase & Co (JPM.N) told the financial, high-tech companies is that they are going to be barred from access to the information of the client, July 30th, and if they don’t have to sign a data access agreements with the bank and agree on a plan to stop it by the customers who have to use passwords in order to collect the data.
A FILE PHOTO of J. P. Morgan’s logo is shown in New York City, USA, January 10, 2017. REUTERS/Stephanie Keith/File Photo
The largest U.S. bank by assets, the term in a letter addressed to the companies by the end of January, which, he said, is that it must be a “concrete plan” in order to make the transition to a new way of collecting customer data, according to two people familiar with the matter.
Otherwise, Otherwise it blocks all automated access to the data, inter alia, through the so-called ” screenscraping, or are in the process of collecting the data from the application in order to use it with the other people on a regular basis.
A JPMorgan spokesman confirmed the contents of the letter, and said that the company has entered into agreements with more than 95 per cent of the companies in which the request to access the data.
The deadline is the latest move by the bank’s efforts to ensure that the transition fintechs, and the data collectors as to what it says, it is a safe and secure way of accessing data from the client.
Fintech start-ups, such as budgeting for an app or digital business banking, and usually connects to a user’s bank account to collect the necessary information to provide their services. What is in the collection of the data from aggregators such as Visa Inc (V. N) -property, Plaid, or Yodlee, while others ask customers for their password.
By the Otherwise method, and fintechs will not be able to use the customers ‘ passwords in order to gain access to their financial information, but will, instead, be connected to a set of bank and program code, which is also known as an API, that provides access only to a lack of information allowed by the consumer.
The transition will not be as large banks, and fintech companies around the world in a struggle over the sharing of the data. The banks have said is their wariness in order to grant access to a third party arises out of a need to protect sensitive information such as transaction history and your income.
Fintechs are skeptical, arguing that it should be up to the consumer, not the banks, in order to decide which companies will be able to look at that information.
JPMorgan chase said earlier this year that it was preparing to crack down on the use of the customer’s password for the purpose of sharing information purposes only, and I have a different method in order to gain access to the information, since in 2016.
However, some of the startups said they were surprised by the strict requirements and deadlines in the letter, according to fintech the source.
“We’ve been working on this with the aggregators, and fintechs, since 2016, it is because of our secure API, which is the best way to help our clients make smart financial decisions more easily and safely, and Paul LaRusso, director of digital platforms at Chase, said in a written statement to Reuters.
The bank said that the companies have agreed to JPM terms and conditions, it would be able to continue to have access to their customer data using existing tools, provided that they have concrete plans to move to the new system and making progress towards that goal.
“Our customers can still use their favorite apps and web sites, as these companies are migrating to our APIS,” LaRusso said.
Report by Pete Schroeder, and Anna Irrera; Editing by Tony Award) and Daniel Wallis