J.P. Morgan and Wells Fargo are snarling the flow of data to popular financial manager platforms. It's very clear that banks fear this growing competition will take away precious customer information (and possibly the customers themselves), but perhaps the real fear is for customer security and the risk of overloading their own servers. Whatever the reason may be, this move by the banks could prevent the competition from gaining access to data, but it could very well cost these banks some customers who have already placed their trust in the growing number of startups providing financial planning and budgeting options.
Sites such as Mint tout their services that give consumers one place to view all of their financial data. Customers who sign up for these services typically provide their passwords and other login information for their various financial accounts. The sites then collect myriad data—often including bank accounts, credit-card balances, frequent-flier miles and retirement savings—to help consumers with budgeting and other financial planning. An aggregator, for example, can tell consumers when they have spent more than their monthly budgets on dining out.