JPMorgan Chase has signed a data-exchange agreement with Plaid, a prominent aggregator that powers fintechs like Robinhood, Venmo and Acorns. The agreement will allow Plaid to access the bank’s customer information through a secure application programming interface.
This is the fourth deal of its kind by JPMorgan. The $2.6 trillion-asset bank previously has signed agreements with Intuit, Finicity and Quovo, a bank spokeswoman said.
“This will give our customers more control and visibility into where and how their data is being used,” Bill Wallace, head of digital at JPMorgan, said in a press release Monday. “This is another key step in our effort to create a safer aggregation environment.”
The bank’s secure API uses a token-based approach to enable a customer to authorize Plaid to download account information on their behalf without Plaid storing usernames and passwords. JPMorgan expects Plaid to start migrating apps through the bank’s secure API in the first half of 2019.
“We're focused on building an ecosystem that will enable fintech progress for decades to come," Zach Perret, CEO of Plaid, said in the release. "That means providing consumers with choice, convenience and a safe way to access their financial data. This agreement represents an important step in that journey,”
Customers can turn access off through the AccountSafeSM on the Chase Mobile app and chase.com. The bank is blocking high-volume traffic from IP addresses it does not recognize and cannot validate.
“We want all aggregator traffic to come through the secure API so that customers can keep using the apps they enjoy — and do so with peace of mind,” Wallace said.
