Amid an uncertain future for open banking, varying views on data sharing could pose a setback. 

JPMorgan, for one, is asking for data sharing companies to pay for access to consumer data, Chief Executive Jamie Dimon said in his annual letter to shareholders in April. 

According to the Banking Policy Institute, it’s costly for banks to collect and safeguard consumer data, and to build the infrastructure necessary for data sharing services. 

For example, the $3.7 trillion JPMorgan has an annual budget of $18 billion set aside for technology expenses, according to the bank. 

While the bank is investing heavily in technology, others view charging for data sharing as a move to “continue to entrench themselves as the leaders in the ecosystem, versus working with innovative fintech companies who have been providing new services to consumers,” Phil Goldfeder, chief executive of the American Fintech Council trade organization, told Bank Automation News. 

The New York-based bank is asking for 10 times more than what data aggregators make on each data transaction, Goldfeder said, adding that such moves can hinder the growth of fintechs and financial access to consumers. 

JPMorgan has no issues sharing data with third-party vendors, as long as it is authorized by the consumer, who knows “exactly what data is shared and when and how it is used,” Dimon wrote in his annual letter to shareholders in April.

Other big banks, including PNC, have signaled they would follow JPMorgan’s lead.  

PNC Chief Executive Bill Demchak said during the bank’s second-quarter earnings call: “I applaud what JPM did. I think they are exactly right. I think there’s a big cost to keeping this data secured and producing in a form that’s readable for our clients.” 

Across the pond, European banks like $452 billion ABN AMRO Bank are also considering charging fintechs for accessing consumer data, according to BAN’s prior reporting. 

What’s next? 

The Consumer Financial Protection Bureau opened Section 1033 Open Banking rule for additional comment period for 60 days on Aug. 21, and is waiting to hear from market participants before confirming next steps, Goldfeder said, adding that the AFC is meeting with its members and stakeholders to draft a response. 

READ MORE: Move trust, not data: How Section 1033 can make open banking work 

If fintechs can’t afford data sharing fees through APIs, they might look to other avenues of data collection like screen scraping, Goldfeder said.  

“JPMorgan’s move is taking us all back to stone ages of data sharing,” he said. 

“When you remove responsible players, all you’re left with are folks who are nefarious actors that take advantage,” Goldfeder said. 

JPMorgan’s move might hurt it in the end, Goldfeder said, adding that JPMorgan is behaving like Blockbuster when Netflix is knocking at the door. 

“They’re refusing to recognize that consumers are demanding innovation and access and financial services,” he said.