Capital One Financial Corp. is one of the fastest growing financial institutions in the world.
A technology upgrade led to the disruption, people familiar with the situation said. Plaid Technologies, Who is software is used to communicate with the public.
Customers use apps for a range of services, including money transfers, investment tools and savings strategies. Capital One said third parties can use a platform known as an application programming interface, or API, to access its data.
“We welcome any third party that wants to provide services to our customers to work with us to access data through our publicly available customer transactions API,” McLean, Virginia-based Capital One said in an emailed statement.
Plaid, which has enabled popular apps such as Acorns Advisers LLC, PayPal Holdings Inc.'s Venmo and Robinhood Financial LLC, has not been able to access some data for Capital . About a million consumers have been affected, the people said.
“Everyone should be able to use the fintech applications and tools that enable them to live a healthy financial life.
Plaid has won consumers to contact Capital One. Some Capital One customer has taken to social media to protest the bank's new policy, using the hashtag #protectdataaccess.
There's a growing discord between banks and the financial technology companies, or fintechs, that want to use their data. Banks want startups to use APIs, which give lenders more control over what data is distributed and how it is released. Fintechs say that they can consumers.
“We are extremely disappointed to see Capital One blocking consumers from accessing their own data,” said Matt Haghighi, the founder of MasonPay, an app that uses Plaid and helps users pay off their credit card debt faster. “The capital of the United States, with roughly US $ 98.5bil (RM398.04bil) ) in outstanding loans, according to data compiled by Bloomberg. The company serves 45 million customer accounts, according to its website.
Over the last year, Capital One has joined with technology companies to expand the use of its API, including a partnership with Intuit Inc. to share data for services like Mint, TurboTax and Quickbooks.
Quovo Inc, a startup that provides fintechs with connections to, Niko Karvounis, chief product officer. – Bloomberg