As open banking regulations come into force around the world, and as consumer calls for open banking access grow, Plaid is upping its game to continue to provide more value to financial institutions and to fintech firms.
On the 19th May, Plaid launched Plaid Exchange – a marketplace through which financial institutions and fintech firms can exchange user-permissioned customer data.
Plaid states that it already has some financial institutions operating on Plaid Exchange, and says it has many more in the process of joining.
The company explained that it built Plaid Exchange based on the fundamental requirements of security, transparency and reliability.
Plaid currently has over 2,600 apps on their network, and these will be available for financial intuitions to connect with using Plaid Exchange.
As private initiatives like Plaid Exchange take force and help to increase Open Banking availability, the call for greater formal regulation (for example in the style of PSD2 in the EU) over Open Banking in the US and some other markets might reduce.
The benefits for financial institutions of using the platform are speed and cost.
Plaid says financial institutions may be able to make API access available through Plain Exchange in as little as 3 months.
The platform also avoids financial institutions from having to cover the cost of hosting and maintaining their own APIs.
Plaid says it will be launching more services for financial institutions via Plaid Exchange in the future.