July 1, 2015
The online financial industry is experiencing a boom in the IT era. The convenience of using financial applications to manage one’s finances has made them a part of everyday lives. One of the product and service features banks list nowadays are its online and mobile banking services. These financial institutions thrive to provide exceptional features and quality of service when it comes to online and mobile banking. Banking categories range from personal banking to business banking and to mortgages, asset management etc. But who are the actual guys behind the flawless functioning of all our online and mobile banking tools? It’s the developers. Considering the amount of complex financial data that travels each day, we can well imagine how tough it is for the developers to gather all the data and then present it to us in a way that can be easily understood.
To make the whole process simpler and cost-effective, Plaid provides developers with an API for banking data called Plaid CONNECT which makes building financial technology simpler by fixing the infrastructure of banks and credit cards. Developers can use their API to integrate with the banking systems within minutes and pull out high quality transactional and account data. The data can be as granular as providing details like geocode, dollar value, street address, etc., related to the transaction. Once integrated within the infrastructure, Plaid’s API works seamlessly to convert raw transaction data and present it in a clear and concise manner.
Plaid also offers a product called Plaid AUTH. The company claims that Plaid AUTH helps a user set up ACH payments in 15 seconds. The user selects the bank and authenticates it with minimal personal details that only they would know. Plaid returns verified account data and lets the user set up ACH payments. The user can also check real-time balances to confirm account sufficiency before making ACH payments. According to company’s website, Plaid AUTH as a product is targeted towards payment platforms, asset managers and crypto currency exchanges. This target segment can use Plaid AUTH for handling their large-volume financial transactions as it makes the process easy and efficient by eliminating the need for remembering account numbers and posting micro deposits.
William Hockey, a former employee of Bain and Company co-founded Plaid with Zach Perret in 2012. The company raised $2.8 million in the first and only funding round with the major investors being Google Ventures, Felicis Ventures, Homebrew and Spark Capital among a few others. Headquartered in San Francisco, California, the Plaid team current consists of nine employees.