This story was originally published on Payments Dive. To receive daily news and insights, subscribe to our free daily Payments Dive newsletter. The Consumer Financial Protection Bureau collected about 14,000 comments by a Tuesday deadline suggesting how it should revise an open banking rule.  Aside from the banks and fintechs clashing over how Americans may control their personal financial information, the issue drew commentary from a motley assortment of interests: advertisers, food suppliers, consumer ad ...

This story was originally published on Payments Dive. To receive daily news and insights, subscribe to our free daily Payments Dive newsletter. Banks stand to benefit as much as fintechs in a new era of open banking, with consumer financial data flowing freely between the two, generating new insights about the market, fintech executives said Thursday. “The big misunderstanding is that it’s fintech versus bank, and we definitely don't see it that way,” said Ryan Caldwell, the founder and chief executive of ...

Tarabut, a Middle East and North Africa (MENA)-based open banking platform, has launched its regional headquarters in Riyadh. The move is aimed to strengthen the company’s technology infrastructure for open banking within the Kingdom of Saudi Arabia. The Riyadh headquarters is set to become a focal point for product development tailored to the Saudi market, as well as for enhancing client engagement. The opening ceremony saw attendance from representatives of several partnering financial institutions, i ...

Core Insights - The payments and fintech industries are preparing for significant networking and learning opportunities in 2026, with a focus on emerging trends and technologies [1][2] Industry Trends - Executives are increasingly focused on compliance, risk management, and fraud prevention, while also adapting to evolving regulations and advancing technology [3] - Artificial intelligence is becoming a prominent topic, with expectations for its applications in payments to be a key discussion point at upcoming conferences [3][4] - Open banking discussions are anticipated, particularly in light of the Consumer Financial Protection Bureau's upcoming rule for large banks, which has faced legal challenges [5] Networking Opportunities - Industry events provide valuable networking opportunities, allowing professionals to gain insights from speakers and engage with thought leaders [5][6] - The importance of leveraging connections made at these events is emphasized for maximizing benefits [6] Upcoming Conferences - Notable payments conferences in 2026 include: - A regional association event in Boston on February 4-5, expected to attract over 900 payments professionals [7] - A symposium in Washington, D.C. on February 26-27, focusing on female leaders and diversity in the payments industry, themed "Unstoppable: Breaking Barriers, Building Futures" [7]

Core Viewpoint - JPMorganChase and Plaid have renewed their partnership to enhance secure data sharing for financial services, including a new pricing structure for data access [1][2]. Group 1: Partnership Details - The renewed partnership allows JPMorganChase customers to link their bank accounts to various external financial services, such as budgeting tools and investment platforms [2]. - The new agreement will not affect Plaid's existing agreements or pricing structures with other customers [2]. - Both companies will invest in technology to improve access to financial data [1]. Group 2: Regulatory Context - The US Consumer Financial Protection Bureau (CFPB) is revisiting regulations on consumer data sharing, which previously prohibited fees like those in the JPMorganChase and Plaid agreement [4]. - The CFPB is currently seeking public input to guide its decision-making process regarding open banking rules [4]. - Legal challenges and criticism from stakeholders in the fintech sector have prompted the CFPB to reconsider its stance on the open banking rule [4]. Group 3: Industry Reactions - The Financial Technology Association, which includes Plaid, is defending the principle of free data access in court [5]. - JPMorganChase has raised concerns about companies accessing its customer data without compensation [5]. - JPMorganChase's consumer payments head emphasized the importance of the partnership for the open banking ecosystem [5].

Core Insights - JPMorgan Chase (JPMC) and Plaid have announced a renewed data access agreement to enhance secure access to financial products for their shared customers [1] - This agreement signifies the continuation of a long-standing relationship between JPMC and Plaid, both of which are leaders in connecting consumers to their banking data [1] - The partnership aims to foster ongoing innovation within the open banking ecosystem [1]

Core Viewpoint - JPMorgan Chase is facing challenges from fintech middlemen that are overloading its systems with excessive data requests, prompting the bank to consider implementing new fees for these services [1][4]. Group 1: Data Requests and System Impact - Fintech aggregators are accessing customer data multiple times daily, even when customers are not using the apps, leading to significant strain on JPMorgan's systems [2]. - In June, JPMorgan received 1.89 billion data requests from middlemen, with only 13% initiated by customers for transactions, indicating a high volume of unnecessary requests [2]. - The majority of these data pulls, known as API calls, serve various purposes, including product improvement and data harvesting for sale [3]. Group 2: Fee Implementation and Industry Implications - JPMorgan is preparing to charge fintech middlemen new fees for system access, which could begin as soon as October, due to the increasing costs of maintaining these systems [4]. - This potential fee structure could disrupt the fintech ecosystem, which has thrived on free API access that allowed for no-fee checking and trading services [5]. - The shift in policy follows a motion by the Consumer Financial Protection Bureau to support a lawsuit aimed at ending the "open banking" rule, which previously mandated free data access for authorized parties [5][6].

Financial Data and Key Metrics Changes - The firm reported net income of $15 billion, EPS of $5.24, and revenue of $45.7 billion, reflecting a year-on-year revenue decline of 10% or $5.3 billion [3][4] - The CET1 ratio decreased by 40 basis points to 15%, primarily due to capital distributions and higher risk-weighted assets (RWA) [5] Business Line Data and Key Metrics Changes - Consumer and Community Banking (CCB) reported net income of $5.2 billion on revenue of $18.8 billion, up 6% year-on-year, with wealth management revenue driving growth [6] - Commercial and Investment Bank (CIB) net income was $6.7 billion on revenue of $19.5 billion, up 9% year-on-year, with advisory fees increasing by 8% and debt underwriting fees up 12% [8][10] - Asset and Wealth Management (AWM) reported net income of $1.5 billion with revenue of $5.8 billion, up 10% year-on-year, driven by management fees and strong net inflows [13] Market Data and Key Metrics Changes - Average client deposits increased by 16% year-on-year and 5% sequentially, reflecting increased activity across payments and securities services [12] - Credit costs were $696 million, driven by builds in the commercial and industrial portfolio, including new lending activity [12] Company Strategy and Development Direction - The company is focused on organic and inorganic growth, with a sustainable dividend policy and potential for buybacks, while also considering acquisitions carefully [22][23] - Management emphasized the importance of simplifying the regulatory environment to enhance lending and market competitiveness [25][26] Management's Comments on Operating Environment and Future Outlook - Management noted that while the environment remains dynamic, there is optimism regarding financial deregulation and its potential benefits for the bank [21][24] - The outlook for net interest income (NII) is approximately $92 billion, driven by strong deposit growth and changes in the forward curve [15][16] Other Important Information - The firm completed the Comprehensive Capital Analysis and Review (CCAR), with an indicative stress capital buffer (SCB) lowered to 2.5% effective in Q4 2025 [5] - Long-term net inflows for AWM were $31 billion for the quarter, led by fixed income and equities [13] Q&A Session Summary Question: Optimism on financial deregulation - Management acknowledged the optimism regarding financial deregulation and discussed the potential uses of excess capital, including organic and inorganic growth opportunities [21][22] Question: Regulatory simplification - Management emphasized the need for regulators to simplify the system to enhance liquidity and lending capabilities, highlighting the complexities of existing regulations [25][26] Question: Drivers of wholesale lending - Management indicated that wholesale lending activity was driven by various factors, including private credit and M&A financing [37] Question: Impact of stablecoins - Management discussed their involvement in stablecoins and deposit tokens, emphasizing the need to understand and leverage these technologies [39][40] Question: Credit quality outlook - Management expressed confidence in the health of consumer credit quality, noting that while there are some signs of stress in lower income bands, overall delinquency rates remain in line with expectations [63][64] Question: Commercial loan growth - Management noted stronger commercial loan growth driven by relationship lending and increased deal activity in the second half of the quarter [80] Question: Regulatory impact on lending - Management discussed how regulatory changes could facilitate more lending and liquidity in the banking system, while also addressing the costs associated with making loans [82][85]

Core Viewpoint - JPMorgan is set to introduce fees for FinTechs accessing customer bank information, potentially impacting the business model of the FinTech sector significantly [2][5]. Group 1: Fee Structure and Impact - The fees from JPMorgan could reach hundreds of millions of dollars, posing a threat to the FinTech sector's business model [2]. - Pricing sheets have been sent to data aggregators, with fees varying based on how the information is utilized, particularly high for payments-focused firms [3]. - The fees may be charged to aggregators, which would then be passed on to FinTechs and ultimately to consumers [3]. Group 2: Regulatory Context - The implementation of these fees is expected to occur late this year, but they are not finalized and may be subject to negotiation [5]. - This situation unfolds amid uncertainty regarding Section 1033, the "open banking rule," which mandates banks to share customer data with other financial service providers for free [5][6]. - The future of the open banking rule is uncertain, with the Republican administration seeking to vacate it, raising concerns about potential fraud and increased liability for banks [6]. Group 3: Consumer Sentiment and Market Potential - Research indicates that 46% of consumers are "highly willing" to use open banking options for payments and financial services, yet only about 10% of Americans have utilized these options, indicating a significant untapped market [7]. - The challenges faced by providers in the open banking landscape are substantial, despite the vast opportunities available [7].

Core Insights - Deutsche Bank and Mastercard have partnered to enable merchants in Europe to offer pay-by-bank functionality, enhancing the payment experience for customers [1] - The partnership aims to deliver innovative merchant solutions that cater to the needs of a digital-first economy, focusing on security, speed, and scalability [2] - The integration of Mastercard's open banking technology will facilitate faster settlement, improved reconciliation, and greater payment transparency [2] Group 1: Partnership Details - The collaboration allows merchants to utilize Deutsche Bank's Request to Pay (R2P) service, enabling consumers to authorize payments directly from their bank accounts with immediate confirmation [3] - The partnership combines Mastercard's open banking payments technology with Deutsche Bank's expertise and extensive merchant base across Europe, promoting account-based payments as a new standard [4] Group 2: Market Trends - Open banking has significantly transformed the payments landscape over the past seven years, with a notable increase in account-to-account payments [5] - In the United States, 46% of consumers express a high willingness to use open banking payments, although only 11% have actually adopted this method, with millennials showing the highest interest at 66% [5] - Mastercard reported that 76% of its customers connect their financial accounts, and 93% prioritize control over their financial data usage [6]