Earlier this year banking technology company Plaid launched Plaid Exchange, a new tool to facilitate open banking.
The new open finance platform offers banks a way to provide open banking connectivity to their clients while keeping their end customers’ data safe and giving them control of their data.
Plaid Exchange helps banks establish token-based API connectivity with the 2,600 third party apps in Plaid’s network. This single connection simplifies integration for banks, helping their clients connect with more third party providers securely. Plaid Exchange can help banks bring an API solution to market in 12 weeks.
A couple of weeks back, Plaid formed a key partnership to help it reach more banks to access the Plaid network. The company is working with Jack Henry & Associates to enable Plaid Exchange for banks on the Banno Digital Platform.
The deal helps Plaid reach more than 350 institutions currently using Jack Henry’s Banno Digital Platform. These financial institutions can benefit by offering their accountholders access to Plaid-powered fintech apps. Plaid has designed the integration process to be simple and Banno clients will be able to access the technology for free.
The deal with Jack Henry comes as an extension of the Plaid Exchange Partner Program, which is aimed to get banking platform providers, API management platforms, and software development companies on board to offer Plaid Exchange to their bank clients.
The network effects of the Plaid Exchange Partner Program will be a boon to the San Francisco-based company. That’s because the more banks Plaid partners with, the more attractive Plaid is to fintechs.
Plaid works with thousands of third-party fintech apps such as Transferwise, Betterment, and Venmo to connect with their users’ financial institutions. The company made headlines at the beginning of 2020 after it announced it had been acquired by Visa for $5.3 billion and made the news again after the U.S. Department of Justice filed a suit to block the acquisition last month.
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