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Goal: Onboard new users,
reduce fraud risk
Region: United States
Industry: Banking

Live Oak Bank needed a way to onboard new users and fund customer accounts that matched its excellent customer service brand.

With Plaid, Live Oak’s customers can fund their accounts in a matter of seconds. Plaid’s fraud protection helps them sleep easy at night.

Security and speed—that’s what Live Oak’s customers expect. With Plaid, their tech can now meet the same high standards as their customer service.

After Live Oak was chartered in 2008, its offerings grew quickly. Initially lending solely to veterinary clinics, the digital bank quickly expanded into 16 different verticals, from hotels to automotive groups. By 2015, Live Oak Bank launched its online personal banking platform, offering CD and savings accounts to consumers nationwide.

But conventional security methods simply were not up to Live Oak Bank’s high standards, and traditional customer verification processes require up to four days of waiting before a customer can fully utilize their new banking account.

In order to best serve its growing numbers of small business and personal banking customers, Live Oak Bank turned to Plaid to address two pressing pain points: security and speed.

Where Plaid fits in

USER ONBOARDS
PLAID LINK
PLAID BACK-END
BANK
BANK CONNECTED

1
Live Oak Bank’s checkout flow allows users to link their bank accounts. That triggers Link, Plaid’s simple front-end module.

2
Users link accounts by entering their bank username and password.

3
That’s it! In a matter of seconds, Live Oak can access the data they need to authenticate accounts and onboard new users.

An onboarding problem

Live Oak relies on its impeccable customer service offerings and robust support line to deliver best-in-class service without brick-and-mortar branches.

Priding itself on a zero-automation system, the bank ensures that every single customer call is directly answered by an employee, ready to promptly solve each customer’s specific support needs. But that led to a unique issue.

Because Live Oak relied on standard technologies for security protocols and industry-standard account verification processes such as micro-deposits, they were required to allocate employees to support work. Their customer call lines were busy with alerts of attempted fraud and questions about the multi-day waiting period for traditional account verification, par for the course issues for many banks.

That wasn’t compatible with Live Oak Bank’s mission for efficiency and excellence, and the executive team acted quickly on a solution, reaching out to Plaid for partnership.

“This is something we couldn’t wait for. We wanted a partner who does nothing but think about account aggregation and verification 24/7,” says Mark Moroz, Live Oak’s Director of Deposits. “We loved the philosophy of Plaid’s API-based platform, and after talking to the folks at Plaid—this is a partnership we knew from the beginning was going to be successful.”

This is something we couldn’t wait for. We wanted a partner who does nothing but think about account aggregation and verification 24/7.

Mark Moroz, Director of Deposits, Live Oak Bank

A Plaid solution

Just two months after reaching out to Plaid, Live Oak Bank had taken major steps toward solving both concerns of security and speed.

The robust security offerings of Plaid Identity drove a decrease in fraud attempts across Live Oak Bank accounts. And while the time delay of micro-deposit verification caused noticeable customer complaints, Live Oak Bank now offers instantaneous account verification to happy customers with Plaid’s Auth.

As customers begin earning interest on their funds immediately, and Live Oak Bank can start booking money towards loans within a day of receipt.

“It’s a win-win for both the bank and the customer,” says Moroz. “We now see fewer customer complaints, and more customer feedback on how smooth and efficient our process is.”

Watching customer call volume and account fraud attempts decrease, the Live Oak Bank executive team was then able to realize efficiencies in employee allocation, moving staff once saddled with fraud prevention efforts and support line work to more specific customer management and loss prevention efforts.

To other banks, Moroz offers, “Plaid 100% percent beat our expectations. Look at your potential and actual losses, and weigh them against the cost. Plaid will help you sleep a lot easier at night.”