Green Dot Corporation (NYSE: GDOT) recently announced that it is teaming up with Plaid, the data network supporting the digital financial ecosystem, in order to bring “secure open finance solutions to GO2bank customers.”
Introduced last year, GO2bank is Green Dot’s “flagship” digital bank designed to “give all people the power to bank seamlessly, affordably and with confidence.”
The firms teamed up to provide GO2bank customers an API-based, token-based open finance experience “enabling the data connectivity that today’s consumers expect.” The partnership leverages Plaid’s open finance API solution Plaid Exchange, which “helps companies quickly and securely facilitate data connectivity on behalf of their customers.”
Ensuring all consumers have access to the latest financial tools has never been “so critical,” the announcement noted while adding that it is “estimated that 10 percent of Americans are unbanked and about 25 percent are underbanked, meaning they lack a checking or savings account, or have one but use alternative (and often predatory) financial solutions.”
What’s more, data show “the majority of consumers feel more confident about their finances the more they use fintech, creating even more demand for digital platforms with secure open finance solutions.”
The joint integration, which is now complete, “connects GO2bank customers with more than 6,000 apps and services powered by Plaid.”
It also “underscores how both companies are aligned in the mission to provide financial access and freedom for all, reaching consumers who may have been shut out of traditional banking services due to lower income levels or credit-thin histories.”
Abhijit Chaudhary, Chief Product Officer of Green Dot, stated:
“Our focus at Green Dot is giving all people the power to bank seamlessly, affordably, and with confidence. Through this partnership with Plaid, we are enabling real change in the industry by delivering an on-ramp for consumers who can benefit from simple, secure access to digital solutions.”
Ginger Baker, Head of Financial Access for Plaid, remarked:
“Plaid is working to ensure that inclusivity is the industry standard. Our partnership with Green Dot helps GO2bank customers securely connect their accounts to the apps and services they choose. We are excited about the joint commitment to universal access and how it enables all populations to access the tools they need to lead healthier financial lives.”
GO2bank is designed to give all people the tools and support “they need to build a stronger financial foundation.”
In particular, GO2bank is “built for the many millions of Americans living paycheck to paycheck – including lower-income consumers, gig workers, small business owners, and more – who stand to benefit most from seamless, affordable, and useful banking and payments tools designed for their unique challenges and needs.”
GO2bank’s mobile app helps customers “build confidence and control in the way they manage their money with up to $200 overdraft protection1, high-value rewards, high-interest savings, and opportunities to establish, build, and track credit, regardless of credit history.”
GO2bank also features “low or no monthly fees, easy access to more than 90,000 retail locations nationwide to deposit money quickly and conveniently, and the ability to get paid up to two days early (or up to four days early for government benefits).”
