Executive warning: JPMorgan's data charging plan may 'severely impact' cryptocurrency and fintech startups

According to Fortune magazine, last month, when JPMorgan informed fintech companies of its plan to charge them for accessing their customers' bank account data, the move sparked strong reactions in multiple sectors of the financial industry. According to four industry executives, this move is a blow to the fintech industry and could have a devastating impact on early-stage startups, including those in the cryptocurrency industry. However, analysts believe that mature fintech companies such as PayPal and Block (formerly Square) may not be greatly affected by this fee adjustment. According to the plan, banks may charge data aggregators fees whenever consumers transfer funds from JPMorgan Chase to cryptocurrency accounts or third-party services like Robinhood. Cryptocurrency and fintech companies typically use aggregators like Plaid or MX to access customer accounts of major financial institutions such as JPMorgan Chase. So far, banks have not charged fintech companies, but this situation may change. It is widely expected that aggregators will pass on new costs to fintech customers, and some may even pass on costs to consumers.