More individuals and businesses are turning to fintechs for financial needs due to the demand being possibly accelerated by the COVID 19 pandemic.
In this regard, Plaid, a financial service company of California is releasing a new solution to help banks manage and secure customers’ financial data since financial institutions (FIs) scramble to meet the rising demand for digital.
The company is launching Plaid Exchange, an API platform that is specifically intended to help FIs tap consumer-permissioned data. Some 44 percent of banking executives said in an Accenture survey that connecting legacy systems with newer FinTech applications is a central challenge.
Niko Karvounis, product lead at Plaid said on May 19 in a company statement, “Digital transformation that was expected to take years is now predicted to take place over a matter of months. Now, financial institutions everywhere must be prepared to meet their customers’ rising demand for digital connectivity.”
To make the transition easier, Karvounis said Plaid is working with numerous integration partners such as Kunai and Core10. There are currently more than 2,600 apps on the Plaid network.
In accordance with the company, using Plaid Exchange, FIs can economically launch an API solution in just three months. Banks can also use the solution to leverage tokenization to maintain connectivity. Bi-directional Plaid Exchange integration makes scheduling data updates smarter.
“Plaid Exchange is a solution for the digital financial ecosystem stakeholders; it’s open finance in a box, so financial institutions can integrate with multiple data partners,” Karvounis said, adding that the platform is an active member of FDX and other standards bodies.