Plaid says that it has led the industry shift away from screen scraping, with the majority of their traffic now “on or committed to APIs.”
Plaid are pleased to see regulators “reaffirm the industry’s adoption of this new technology.”
At the same time, the open finance rule must “ensure the timeline for the transition to APIs is reasonable in order to ensure a smooth transition so that consumers don’t lose access to financial services they rely on.”
Plaid also mentioned that they are pleased to be “a part of a thriving community of companies building in financial services and which care deeply about creating more opportunities for consumers.”
With the 1033 rulemaking expected to be finalized later this year, Plaid says they will work closely with their partners “to align to the forthcoming regulatory framework.”
Plaid notes in a blog post that they will “continue to advance the security, transparency, and privacy controls built into our open finance platform to make the transition smooth.”
By working together, Plaid says we can can “ensure that a strong consumer financial data right accelerates the development of more innovative financial services in the decades to come.”
As explained in a blog post by Plaid, an open finance rule “should empower consumers by allowing for secondary uses that benefit them and a healthy, competitive ecosystem – from developing anti-fraud tools, to making more inclusive cash flow underwriting models, to building personalized financial tools, to conducting critical public good research.”
As the financial system becomes more open, companies need “the ability to stay ahead of the curve to ensure the right level of consumer protection.”
Plaid further noted that it was “founded over a decade ago on the principle that consumers have a right to their own financial information, and their ability to access and share that data encourages more informed financial choices and opportunities to access a broader set of services. It also inherently encourages competition, which in turn ensures better products and a focus on stronger consumer outcomes.”
Today, Plaid powers a network of applications and services “across a variety of use cases, and has unlocked the ability for thousands of companies to deliver efficiencies and better outcomes for the consumers they serve across lending, payments, anti-fraud and more.”
One in 3 people in the US have reportedly “connected to their chosen app or service using Plaid.”
For more details, check here.
