Dimon 'scared shitless' by fintechs; calls out Plaid

Dimon 'scared shitless' by fintechs; calls out Plaid

JPMorgan Chase CEO Jamie Dimon says incumbent banks should be "scared shitless" by fintech rivals, adding that some - including Plaid - are competing unfairly.

Dimon offered his blunt assessment in a conference call with analysts on Friday, responding to a question about the threat posed by fintechs: "Absolutely, we should be scared shitless about that."

The JPMorgan chief said payments will be the main battleground: "I expect to see very, very tough, brutal competition in the next 10 years," adding "I expect to win, so help me God".

Among the rivals Dimon has warned his team about are PayPal, Square, Stripe and Ant, as well as Big Tech players like Amazon, Apple and Google.

Dimon also took aim at bank data sharing startup Plaid. There are “people who improperly use data that’s being given to them, like Plaid,” he told analysts.

Another gripe is the way that firms like Chime partner small banks so that they can charge high debit card swipe fees. Large banks are prevented from charging these high fees under the Durbin Amendment.

These are among the "examples of unfair competition, which we will do something about eventually,” said Dimon.

Comments: (4)

A Finextra member
A Finextra member 18 January, 2021, 17:031 like 1 like

His Plaid problem is easily fixed. Now Visa's kindly established the price tag.

A Finextra member
A Finextra member 19 January, 2021, 04:03Be the first to give this comment the thumbs up 0 likes

Jamie appears to ignore (to his peril) the potential challenges posed by SS&C and Broadridge, among others.  They have the ability to sieze huge portions of his processing businesses (which are built on legacy technologies).

A Finextra member
A Finextra member 19 January, 2021, 09:461 like 1 like

Some fintechs compete unfairly? Almost all do - they offer free of charge service for end users but are not transparent on the utilisation of the end user data. We should remember that "if a service is free of charge - you are the product".  People who use banking data sharing services should pay attention to this basic rule. 

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 19 January, 2021, 12:13Be the first to give this comment the thumbs up 0 likes

A lowly staffer at JPMC, well below the level of CEO Jamie Damon, can instantly cut off Plaid's access to JPMC bank accounts. If a CEO is even mildly threatened by Plaid, that's exactly what he will direct that lowly staffer to do - the way PNC has already cut off Plaid access. Maybe it's only me but this "scared shitless" public confession by JPMC CEO seems like a big smokescreen.