Chase customers can now import their financial data to Intuit financial management tools without having to hand over their account credentials, addressing a key flashpoint in bank relationships with third party technology companies.
The companies says the agreement sets the bar for how banks and technology companies can work together to serve their shared customers. It uses an application programming interface to download the requested account information automatically into Intuit financial management tools, such as Mint, TurboTax Online and QuickBooks Online.
“The most important part of this is giving control to the customer,” says Jamie Dimon, chairman and CEO of JPMorgan Chase. “Customers will get to decide what they want to share and when they want to share it - without having to hand over their password.”
The issue of customer data sharing has been a sticking point in bank relationships with fintech competitors. Earlier this month, a host of US fintech firms - including Betterment, Kabbage and Ripple - set up an industry group to push for consumers' rights to share their bank financial data with third parties.
Banks have been reluctant to provide access to data to upstart competitors and say that the practice of customers giving third parties the ability to login to their accounts for this purpose poses a security risk.
The agreement between Intuit and Chase aligns closely with the Center for Financial Services Innovation’s “Consumer Data Sharing Principles,” released in October 2016. These principles create a roadmap for secure collaboration between the financial services and technology industries to help consumers manage their financial lives.
Gordon Smith, CEO of consumer & community banking at Chase, says: “We encourage all financial institutions, aggregators and application service providers to join us in helping consumers and businesses use technology tools to understand their financial lives, identify new needs and make better decisions about their money.
“We will continue to pursue technology and industry advancements that place consumers and businesses at the center, allowing them to control who has access to their financial information in a way that prioritises ease of use and transparency for all."