JP Morgan Chase teams with Plaid for open banking
Plaid teams up with JP Morgan Chase
After making its international debut earlier this year, Plaid, a provider of APIs for financial infrastructure, announced it has linked up with JP Morgan Chase to help the bank make a move toward open banking by enabling account holders to safely share their financial data with third-party fintech applications.
Julie Muhn from Finovate reports.
Via a secure API, Plaid accesses consumers’ data to help them share their digital financial information with other fintech apps such as Robinhood, Acorns and Venmo. The cooperation will also offer developers quality data they can use to build new products and services. To put clients in control, Chase has launched a new tool called Account Safe that brings users visibility into which applications are using their data and give them control over the use of their data.
Plaid believes this partnership “underscores the need for secure and reliable data in the fintech ecosystem”. It continues: “We firmly believe that collaboration with financial institutions is the best way to deliver on the promise to protect consumers and developers. We’re proud of the steps we are taking with Chase towards this reality.”
According to Business Insider, Plaid is in talks with investors about a funding round that could raise the company’s valuation to $2 billion. To date, Plaid has raised $59.3 million from investors including Goldman Sachs Investment Partners and Spark Capital.
Plaid has 150+ employees and offers six products, including Auth, an account authentication tool; Balance, which pulls account balance information in real-time; Identity, which leverages bank data to verify consumer identity; Transactions, which pulls bank statement data across banks; Assets, a verification of assets tool; and Income, a tool that validates a consumer’s income and verifies direct deposit data.
Since it was founded in 2012, Plaid says it has analysed more than ten billion transactions.
