Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
JPMorgan’s Data Fee Sparks Open Banking Backlash
Open Banking | July 15, 2025
Image: Freepik
JPMorgan’s New Data Access Fees Spurs Calls for Stronger Open Banking Rules in North America
On July 11, 2025, Reuters reported that JPMorgan Chase is planning to charge fintechs for access to customer data (subscription required) through its APIs, starting in September. The aggressive announcement by by a major U.S. bank to charge and control data access generated immediate pushback from fintech platforms and open banking advocates, as highlighted on Payments Drive.
Steve Boms, executive director of the Financial Data and Technology Association North America:
“It’s hard to look at this decision by Chase as anything other than a cynical attempt to take advantage of regulatory uncertainty and an about-face by the CFPB. I think they’re banking on the court throwing the rule out.”
See: Canada’s Open Banking Journey: Interview with Steve Boms, Executive Director Financial Data and Technology Association – North America “FDATA”
Penny Lee, Chief Executive of the Financial Technology Association:
Americans deserve the “freedom” to control their financial data. Charging for financial data access undermines that freedom and threatens to jeopardize millions of Americans’ access to the financial services of their choice. This action is designed to crush competition, hold back American innovation, and lock consumers into bank-only products.”
Policy Tensions at the Core of Open Banking
Open banking is designed to put consumers in control of their own financial data. But JPMorgan has another idea; charging fintechs to access customer data when open banking rules are not not clearly regulated, and in doing so, incumbent banks can continue to control terms that limit competition.
See: Open Banking Delayed in Canada But Back in the Legislative Radar
In Canada, this issue is highly relevant for it's proposed Consumer-Directed Finance or open banking framework to be implemented and overseen by the Financial Consumer Affairs Authority (FCAC) in 2026. While Canada’s upcoming framework mandates data sharing and prohibits fees for baseline access by accredited firms, it has not yet been implemented in law. Until then, banks could continue using private agreements that include fees or restrictive terms.
Without legislation or regulatory direction, banks are free to protect their dominant positions by pricing out smaller fintechs or forcing bilateral contracts.
This strengthens the importance of Canada finalizing its open banking rules with clear and enforceable standards that prevent data paywalls.
Fintech competitiveness and market access are at risk. If fees for data access take hold more broadly, it could shift the balance of fintech innovation away from consumer-focused tools towards banking ecosystems, which would limit diversity and competition.
Global Comparisons
In the UK, the Competition and Markets Authority mandates that large banks provide access to current account data at no cost through standardized APIs, under the Open Banking Implementation Entity. This has led to a dynamic fintech ecosystem where consumers can safely and easily share data across apps and services.
In Australia, the Consumer Data Right (CDR) goes even further than just banking to include energy and telecommunications. Under CDR rules, banks must provide access to customer data free of charge, with fees allowed only for optional or value-added services.
See: DPI Digital Finance Works. Why Is Canada Still Waiting?
In contrast, both the U.S. and Canada have not yet fully implemented open banking frameworks. In the U.S., the Consumer Financial Protection Bureau (CFPB) proposed Section 1033 to support consumer data rights, but no binding national law exists. And to make matters worse, under the Trump-appointed CFPB, they effectively killed off the open banking rule as proposed, adopting the banks’ legal argument that the rule was beyond its authority and should be invalidated by the court. So without any protective data sharing framework, banks in the U.S. can act unilaterally in their favour..
Why It Matters for Canada’s Fintech Future
If large incumbent banks like JPMorgan are allowed to set fees or gatekeep data access, consumer choice suffers and fintech innovation slows. As NCFA has advocated for years, Canadian regulators and policymakers must move urgently to finalize a national open banking framework that guarantees:
- Free, baseline access to consumer-permissioned data
- Interoperable API standards
- Robust privacy and security requirements
- Clear accreditation for third party providers
See: Should Fintechs Design for People or AI Agents?
If we don't act now, the same risks and fragmentation now emerging in U.S. markets will further stifle productivity, innovation, and competition in Canada.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
 |  |  |
|---|---|---|
 |  |  |
Leave a Reply