JPMorgan Takes A Step Toward Open Banking

25 de Octubre, 2018

Tiempo estimado de lectura: 2 minutos

The agreement will allow Plaid to access JPMorgan customer data through an application programming interface (API), giving customers the ability to share their financial information with fintechs.

Despite JPMorgan CEO Jamie Dimon previously saying fintech data aggregators present a risk to customers, the bank has been shifting its attitude, with the latest deal following similar agreements with Intuit, Fincity, and Quovo.

Here’s why this move makes sense for JPMorgan:

  • It broadens the suite of products available to existing customers. Forty-percent of global consumers are open to the possibility of self-assembling their suite of banking products from a range of providers, per Accenture. Integrating with third parties like Plaid allows JPMorgan to serve these customers’ evolving demands by giving account holders access to a range of fintech products without having to leave the bank. This not only strengthens its relationship with existing customers but is also likely to help it attract new deposits. Moreover, the bank doesn’t have to bear the development costs for these products.
  • It also creates new revenue streams for JPMorgan. The bank can extract value from its rich transactional data by charging third parties for the right to plug into its systems, creating new revenue channels that hadn’t existed before. Given it has already launched an API store for developers, which grants access to its products and services, the latest deal is likely to also help it broaden this ecosystem.

This shift in attitude could be a precursor to a move toward open banking by the bank. Open banking around the world, including in the EU and UK, is being driven largely by regulatory demands. In the US, as of yet, such demands don’t exist on banks. However, there has been some evidence of late that banks in the US are warming to the idea of open banking on their own, and this latest move suggests JPMorgan may be angling to become an early mover in this space. By embracing this trend, JPMorgan and other innovative banks will be a step ahead if regulations are introduced. Additionally, by opening its ecosystem, JPMorgan can significantly strengthen its place in a value chain increasingly characterized by a shift toward an open marketplace.

Fuente: Business Insider

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