Back to Blog

Plaid Signs Open Banking Agreement with JPMorgan

After making its international debut earlier this year, Plaid, the provider of APIs for financial infrastructure, announced it has linked up with JPMorgan 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.

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.

In an announcement on its blog, Plaid stated that it believes today’s partnership “underscores the need for secure and reliable data in the fintech ecosystem.” It continued, “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, this news comes as 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 6 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 has analyzed more than 10 billion transactions.

At FinDEVr San Fransisco 2014, the company’s founder Zach Perret gave a presentation about leveraging the Plaid API for financial infrastructure. Earlier this year, Plaid was featured by both CNBC and Forbes. At the start of 2018, the company was honored on Forbes’ Fintech 50.