JPMorgan Chase has inked an data sharing agreement with aggregator Plaid Technologies, which will enable the bank’s customers to have better visibility over how their personal data is used.
Plaid enables consumers to connect their bank accounts to fintech firms such as PayPal, Venmo and Coinbase.
In case of JPMorgan, Plaid will access the data of customers through the bank’s API.
This will address security concerns by enabling Plaid to download the requested data without storing user names and passwords of customers.
At the same time, the bank also started blocking high-volume traffic from computer addresses, which it is unable to validate.
Plaid head of strategy and business development Sima Gandhi said: “Through our work with Chase, consumers will have enhanced controls when authenticating and permissioning their data, while preserving convenient access to their financial data. At the same time, developers will be able to work with more secure, consistent and reliable data access.
“We believe this agreement underscores the need for secure and reliable data in the fintech ecosystem. As the largest financial data platform for developers, we share millions of mutual users with Chase. As a result, any changes we undertake with Chase can help steer the broader fintech ecosystem.”