Fintech firm Plaid has recently launched its Gateway Partner Program in order to drive open banking compliance.
Plaid’s blog post noted that the financial services industry is preparing for the release of the final Section 1033 rule mandating that financial institutions provide consumers with “secure and reliable access” to their financial data.
At Plaid, they claim to look forward to this moment, which will aim to usher in a new era of open banking in the U.S.
Plaid’s blog post further noted that they’re eagerly listening to their financial institution partners, who state that they have an “urgent” need for scalable, streamlined solutions to comply with the expected requirements of this regulation.
Now, Plaid said that they’re addressing that need with the launch of our Gateway Partner Program.
The Gateway Partner Program easily enables a single-point solution for financial institutions that will be expected to meet compliance requirements across all third parties and use cases.
The program’s partners have been vetted for their ability to rapidly implement FDX-aligned APIs and have already integrated with Plaid’s network.
This ensures financial institutions can transition to 1033-aligned, API-based access with the thousands of apps and services in the Plaid network today.
To date, over 80% of Plaid’s traffic is on or committed to APIs.
This is due to many years of working with financial institutions and digital banking platforms to ensure financial institutions offer customers the API connectivity that underpins open banking.
Because of those efforts, 7,000+ financial institutions have access to API connections with Plaid and are on a path to 1033 compliance.
Earlier this year, Plaid said they continued these efforts by launching our Open Finance Solution to assist financial institutions “directly with open banking requirements.”
Our suite of three no-cost products—Core Exchange, Permissions Manager, and App Directory—is designed to help data partners enable, instantly view, and continuously “manage connections to the thousands of apps across the Plaid network.”
Compliance is said to be “top of mind” at every financial institution, and Plaid believes they can lead the way in coming up with solutions for their partner’s needs.
In designing our Gateway Partner Program, they have taken learnings and best practices from working with digital banking platforms and directly with financial institutions.
The partners that are part of our gateway program can bring the speed and ongoing support required as financial institutions “navigate the regulatory transition, while maintaining a high standard of the technical readiness needed to support the scale and breadth of Plaid’s Network.”
They are now pleased to introduce Ninth Wave as theirinaugural preferred gateway partner.
They were carefully vetted based on specific criteria, including “deep diligence on scalable, reliable tech, and readiness for 1033 obligations.”
Together, they will continue to drive innovation in the financial services industry, ensuring institutions are well-prepared for Section 1033 and can meet the “evolving demands of their customers.”
Their commitment to building a partner program underscores Plaid’s vision for the future: a financial system that is “open, transparent, and built for the benefit of all.”
For a number years, they have been dedicated to making open banking accessible for financial institutions as well as fintech companies.
The introduction of the Gateway Partner Program is said to mark yet another step in Plaid’s journey toward enabling open banking.
Plaid also said that they recognize that financial institutions are at different stages in their compliance journey, and for some, it may “seem overwhelming.”
Every institution should be able to choose the approach that works “best for them” as they move forward with enabling open banking.
By working with Ninth Wave and others, the financial infrastructure Fintech said they are positioning financial institutions of all sizes to have access to resources so they can “more easily meet compliance standards” and embrace the opportunities that open banking presents.