Breakingviews - Jamie Dimon overstretches his fintech flex

Reuters

17-07-2025

NEW YORK, July 17 (Reuters Breakingviews) - Jamie Dimon is fighting his fears. Four years ago, JPMorgan's (JPM.N), opens new tab boss warned that mega-banks like the one he runs should be 'scared shitless, opens new tab' about technologically savvy financial challengers. Now he has begun pushing back in ways that are spooking those same fast-growing rivals. Such aggressive tactics, which include recently initiated plans to charge data aggregators for access to basic customer data, attest to his anxiety and betray a heightened risk tolerance for coping with it.
The biggest concern is that new fintech ventures start with clean software slates, giving them an edge over incumbents saddled with patchwork systems precariously glued together over decades. JPMorgan has tried to overcome this handicap with money. Its 2025 technology budget is $18 billion, more than the median amount of assets, opens new tab that U.S. banks hold, according to data connector MX Technologies.
Those investments have bolstered JPMorgan's digital capabilities, but its ever-cautious CEO clearly sees more territory to defend. The bank recently told middlemen such as Yodlee, Finicity and Plaid that it will start collecting fees, opens new tab for information they access on behalf of consumers to sync with other banks and lending, investing and payment apps like Rocket, Robinhood and Venmo. The Bank Policy Institute, which lobbies on behalf of JPMorgan and its peers, also has legally challenged open-banking rules, opens new tab that would, among other things, prohibit such charges.
It's understandable that the bank wants to protect its competitive moat and recoup some costs related to fraud protection and 2 billion monthly account access requests. JPMorgan also generated $34 billion of interchange fees, opens new tab from processing credit and debit card payments last year, which resulted in $5.5 billion of income after rewards for customers and outlays to partners. If users switch to making payments using electronic transfers, which are typically free, this revenue will shrink. More significantly, the easier and cheaper it is to connect outside vendors, the less likely customers will treat JPMorgan as a one-stop shop.
The amounts JPMorgan intends to charge have not been disclosed, but they will probably be prohibitive for some fintech firms, especially if other big U.S. banks follow suit. The risk for Dimon is that consumers resent incurring costs for their own data and find it harder to use various apps, while shining a brighter spotlight on JPMorgan's clout. Although some analysts downplay, opens new tab the extra expense for aggregators, Andreessen Horowitz Co-Founder Ben Horowitz, whose venture capital firm backs cryptocurrency trading and other financial startups, called it, opens new tab 'horrible anticompetitive behavior.' Dimon's fintech flex looks painfully overstretched.
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