Plaid Raises $44 Million to Allow Fintech Startups Access to Customer Data

Plaid's software which enables fintech startups to access clients’ bank account information has raised a new round of funding.

Plaid Technologies Inc., a software provider which allows fintech startups to access their customers’ bank account details when providing mobile and web services such as budgeting, investing or lending, has raised $44 million in a new round led by a fund at Goldman Sachs.

We think consumers should have access to their data, and should be able to utilize it when and where they need it.

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The latest funding, which was announced by the WSJ, is a boost for apps and websites that use Plaid. The company has now raised around $60 million in its quest to ensure access to customer data held by banks.

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Banks and fintech firms are reported to have clashed about ways in which companies access bank-customer account data. This has also included concerns about password security and surges of data traffic to banks’ websites.

Industry discussions on the matter have included potential agreements about how and when data aggregators can access customer information, what data customers want to share and about how customer account passwords should be stored.

Fintech startups, which tend to offer services that compete with banks, have said that bank data should be free for customers to share whereas banks have said that they want to make sure customer data is secure and that their servers aren’t overwhelmed.

The latest funding was welcomed by Zach Perret, co-founder of Plaid, who told the WSJ that the past six months have seen “increasing cooperation” between banks and fintech firms, though so far that hasn’t led to a resolution. He added: “There’s an active discussion in the industry, and we think consumers should have access to their data, and should be able to utilize it when and where they need it”.

 

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