Customers of JPMorgan Chase & Co. (NYSE:JPM) will be offered real-time access to their data following an agreement the bank has entered with Intuit Inc. (NASDAQ:INTU). Under the agreement, clients of JPMorgan Chase will be able to link their bank accounts to the cloud accounting products of Intuit without having to provide the usernames and passwords associated with their bank accounts.
“The most important part of this is giving control to the customer. Customers will get to decide what they want to share and when they want to share it – without having to hand over their password,” said the chairman and chief executive officer of JPMorgan, Jamie Dimon, in a statement.
Personal financial management tools and products
The accounting products that Chase customers will have access to include QuickBooks Online, TurboTax Online and Mint. Brad Smith, the chief executive officer of Intuit, hoped the partnership would aid Chase customers in making informed decisions. In the agreement, Chase clients will have the opportunity to give their consent on whether they want their data shared with Intuit. JPMorgan Chase will then offer the financial software maker a unique data token in order to get access to the specified data.
In the fall of 2016, the Center for Financial Services Innovation disclosed that it had come up with a set of principles that would be applied in data sharing in the sector. After the partnership between JPMorgan Chase and Intuit was announced, both acknowledged that they had been guided by those principles.
Open relationship
With Intuit being one of the most prominent providers of personal financial management tools and JPMorgan Chase being the largest bank in the United States by virtue of assets, the two have said their partnership is not exclusive. The two organizations will be free to partner with other corporations in deals of a similar nature.
The deal brings the possibility of individuals being empowered to better track their spending patterns and habits from the palm of their hands closer. For some, the advantage is that they will be able to monitor and curb wasteful habits and thus increase their savings rate.
In Wednesday’s trading, JPMorgan Chase & Co rose by 1.55% to close at $86.03. Intuit rose by 1.06% to close at $120.01.