Last year, Plaid announced its goal of devoting 75% of our traffic to APIs by the end of 2021.
This goal of fair, reliable and secure API-based data exchange is one of our top priorities as the industry progresses towards a fully digital financial system.
That’s why I’m delighted to announce an open financial partnership with Capital One – a digital finance innovator – and the successful completion of our migration to the Capital One API. As a result, Capital One clients can enjoy reliable and secure access to the applications and services in our network, and through the technical partnership, we are able to make significant progress in our efforts to help create a seamless ecosystem. identifiers.
As a result of continued open funding efforts, we have entered or have ongoing data access agreements with the majority of major US financial institutions, including US Bank, JPMorgan Chase, Wells Fargo and others. . Shifting to an API-based ecosystem helps make data sharing more reliable and also helps eliminate industry reliance on credentials, a top priority for us and the ecosystem at large.
Building a better ecosystem for consumers
Consumers have the right to access their own financial information when and how they want. With a truly open financial ecosystem, people can control access to a wider range of their financial data, such as savings, mortgages, and investments, all powered by APIs. Plaid’s integrations with financial institutions are designed to ensure that more consumers can share their financial information securely with the more than 5,000 applications powered by Plaid, including Venmo, Acorns, Betterment and Robinhood.
Today, more than half of Americans say they use digital tools to manage their money, according to a July 2020 survey. And 59% use more money management apps now than before COVID-19. As finance moves from analog to digital, even more consumers will view digital tools and services as essential, making it essential for all industry participants to adapt to a fully digital financial system.
Plaid’s recent collaborations are a testament to efforts to work across the industry to create a better ecosystem that gives people choice and control over where and how their information is shared between digital tools. Innovation will continue in this area with initiatives such as Plaid Portal, a service (currently in beta) where consumers can view and manage their account logins, allowing them to remain in control of where their data is shared.
Help drive industry change
Plaid is helping the industry to respond in a significant way to this unprecedented consumer demand for digital finance. First, for banks with the resources to create API-based data exchange, we can integrate to provide more reliable data connectivity on behalf of our common customers and the developers who rely on our network.
Second, Plaid Exchange offers an alternative for those who prefer to integrate seamlessly with a solution built by Plaid, making it easy for any financial institution, regardless of scope and size, to participate in an open financial network.
We are also a member of leading industry groups like Financial Data Exchange (FDX), a nonprofit focused on unifying the financial industry around a common standard for secure and convenient access for consumers and businesses to their products. financial datas.
As the world moves closer to an open financial future, it is increasingly important for the industry to continue to embrace innovative digital strategies that provide consumers with convenient and secure access to their financial information so they can better manage their daily life. We are delighted to continue to share the milestones of our journey there together.