Plaid partners with financial institutions to simplify the transition to open banking by providing secure, scalable API solutions that enable seamless data sharing. By collaborating closely with financial institutions, Plaid aims to help “ensure compliance with regulatory standards and modernization of infrastructure for data connectivity.”
According to Plaid, this not only improves “the customer experience but also reduces reliance on outdated practices like screen scraping, making open banking more efficient and accessible for institutions of all sizes.”
Plaid is dedicated to working “with financial institutions to meet their open banking obligations, ensuring their customers have seamless and secure access to the apps and services they need.”
Plaid reports they have recently launched its Open Finance Solution, “a suite of free products designed to help financial institutions comply with upcoming Section 1033 regulatory requirements with minimal effort.”
A crucial part of our Open Finance Solution is their FDX-aligned API spec Core Exchange, which helps banks connect to Plaid’s network.
Today, thousands of financial institutions “are able to build an API to FDX standards with Plaid.”
They continue to work with these institutions “to ensure their consumers are protected while enjoying consistent and secure access through the open banking regulatory framework.”
The collaboration between Plaid and financial institutions “is essential for the success of open banking.”
Before the end of the year, data partners can expect “to see enhanced features in our data partner dashboard, including the launch of Integration Health, which will enable institutions to view errors, debug issues, and monitor the performance of their API. Once API performance requirements, such as uptime and latency, are finalized in the Dodd-Frank Section 1033 rule, which is expected to be issued this fall, we plan to update our tooling to provide insight into whether our data partners’ APIs meet those requirements.”
They’ll continue to expand their offerings “for data providers—both individual institutions and platforms—so we can all work together to build a more secure and connected ecosystem that better serves the needs of consumers.”
Today, they’re announcing “that 80% of their traffic is now on or committed to APIs, marking a significant milestone in our mission to eliminate the industry’s reliance on screen scraping.”
