JPMorgan Chase bans FinTech third parties from accessing customers’ passwords

From: RegTech Analyst

Third-party apps will no longer be able to access JPMorgan Chase’s customer accounts as the bank introduces stricter cybersecurity standards.

The move comes three years after CEO Jamie Dimon warned about the dangers of data sharing, the Financial Times reported.

The bank will swap the passwords with tokens that are sent to third parties instead. Those tokens will reportedly give a narrow range of data to the companies working together with JPMorgan Chase.

While it is not clear when the exact cut-off date for sharing passwords will come, JPMorgan Chase is already implementing the new regiment.

JPMorgan Chase signed up Envestnet | Yodlee as the first company to use the new tokens data sharing standard in December 2019. The idea was that trough the partnership, JPMorgan Chase customers would be able to share their data in a secure way to the more than 1,200 third-party applications on the Envestnet | Yodlee financial data aggregation platform.

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