Venmo Glitch Opens Window on War Between Banks, Fintech Firms
Fintech firms accuse banks of blocking their access
Fintech companies say they need access to customer account information held by banks and other traditional financial companies. To protect their own turf, banks and brokerage firms have resisted.
PNC customers are getting a front-row seat on the rivalry between the banking industry and financial technology companies.
Many of the Pittsburgh bank’s clients are having trouble connecting their accounts to their Venmo apps, cutting off access to PayPal Holdings Inc. PYPL’s popular mobile payment service. When they have sought help, they have found the two companies blaming each other for the disruption.
PNC Financial Services Group PNC suggested in tweets that customers switch to Zelle, a rival payment app that it and other big banks jointly operate.
Venmo countered by urging its users to tweet their complaints, suggesting they tweet: “Hey @PNCBank…Let me use the financial service apps I need!”
The skirmish is part of a war over access to customer financial data. Fintech companies—nonbank firms that use apps and other new technologies to provide financial services such as digital payments, loans and financial planning—say they need access to customers’ account information held by banks and other traditional financial companies. To protect their own turf, banks and brokerage firms have resisted.