July 26, 2023
Financial Access Newsletter - July, 2023
Raja Chakravorti
By working together through the Plaid Network, we can create enhanced digital experiences for consumers. Financial organizations of all sizes can enable API connectivity and instantly verify accounts and identities to streamline account opening and funding. They can also identify and mitigate fraud faster, and lower risk more accurately.
In this quarter’s newsletter, we’ll highlight some of the ways financial services providers are using our newest products to move faster, solve long-standing problems, and ultimately grow their business. We’ll also share insights into how the payments marketplace is changing.
Expanding API access to the Plaid Network
The majority of our open finance traffic has shifted to APIs
We’ve migrated 100% of our traffic to APIs for financial institutions including (but not limited to): Capital One, JPMorgan Chase, USAA, and Wells Fargo. Additionally, we’ve signed agreements with RBC, Citibank, American Express, and M&T to migrate our traffic to their APIs in the coming months. These institutions now join popular fintechs such as Wise, Chime, and Varo in enabling API connectivity for their consumers. Learn more.
Finastra and Plaid collaborate
Finastra and Plaid announced a collaboration to give account holders streamlined access to fintech apps. Through Plaid’s Data Connectivity solutions, institutions on the Finastra Fusion Digital Banking platform can ensure more reliable connections, increase efficiencies, and move to credential-less integrations, adding a distinct layer of security.
American Express customers now have API access to the Plaid Network
Plaid has signed a Data Access Agreement with American Express. The agreement means that American Express customers will have the ability to securely connect their accounts to the 8,000+ apps and services supported on the Plaid Network. The integration will feature an OAuth flow with biometric authentication, and will support credit cards, and savings and checking accounts for American Express customers. This will improve the end-user experience and establish more reliable connectivity for all Plaid customers and their end users.
Faster payment options
New real-time options are changing the payments space
Industry experts recently discussed with Plaid how the shift to real-time payments using RTP® from The Clearing House and FedNow will impact the market. Plaid is helping customers navigate this shift with tools like Instant Payouts, a solution within our Transfer product that supports both RTP and ACH payment rails. Tearsheet Editor-in-Chief Zach Miller sat down with John Anderson, Head of Payments at Plaid, to discuss how Plaid is helping companies build and support real-time funding solutions.
Activate more users with a faster and easier Link experience
Plaid has been working behind the scenes to improve the Link experience. We're shipping a new layout for the Institution Select pane, which shows 8-10 institution logos before scrolling. In testing, ~5% more users were able to find their institution without using the search function in Link—which is one less step for them to complete when connecting their account. We’ve also improved the personalized institutions list by adding more signals including a user’s device type and the Plaid products being used.
Reduce fraud across the digital finance ecosystem
Last month, Plaid introduced Beacon, a new anti-fraud network designed to help stop the chain reaction of fraud that occurs when identities are stolen and accounts are compromised. Beacon takes a network approach by enabling real-time, secure fraud information sharing across organizations. Watch Threads to see Beacon in action.
Deepen engagement with banking personalization
Banks and credit unions are using Plaid Enrich to transform internal transaction data into actionable insights to create opportunities. Fintech experts from Infosys and Bank of Texas spoke with Vicky Margolin, Product Marketing Lead at Plaid, about how they’re using banking personalization to deliver value and improve their customers’ financial health.
Another example of customer engagement comes from personal finance company SoFi who has found that customers who connect with Plaid have higher retention rates, increasing their LTV. “Because Plaid’s data is so rich and deep, it allows us to better understand our members so that we can begin to personalize the user experience,” said Connie Crossley, Principal Product Manager at SoFi.
In case you missed it….
On June 22, Plaid hosted Threads 2023, a virtual event highlighting our latest products and cutting-edge updates designed to help you build the future of finance. Watch on demand.
Check out this Bloomberg profile piece covering Plaid’s history and the rise of open banking in the US. The article illustrates Plaid’s commitment to empowering consumers and advocating for the shift to API connectivity.