Thanks to new technologies, users can manage their finances and do it several times faster and easier. One of the top best platforms for connecting to bank accounts is Plaid. We will talk about it in more detail because this is a real find for those who want to manage their finances more efficiently.
What is Plaid?
Plaid is a special banking application that allows you to link your bank account and speed up the execution of transactions we are used to. Using this platform, you can significantly save time, because you no longer need to collect bank data, send documents, and other procedures in order to complete financial transactions.
Founded in 2013, Plaid is headquartered in San Francisco. It promises to make it simpler to securely connect bank accounts to financial management applications by acting as a financial data aggregator in general.
By getting data on users’ bank accounts and securely “packing” it for future use, the Plaid program in particular enables you to cut the formerly excessively lengthy verification process to a few seconds. Financial institutions are likewise interested in expediting and simplifying registration, and they pay Plaid money for this service.
The Plaid network is currently connected to 80% of the major fintech applications in the US, and the firm has more than 11,000 banks and financial services providers as partners. Abra and Coinbase, which were already mentioned, are two of them. One in four of the more than 200 million accounts on Plaid, which has a workforce of about 450 individuals, are owned by users with open bank accounts. That is why many people complete Plaid bank integration.
It’s a secure way to connect your checking account to apps and other peer-to-peer (P2P) developments. Plaid works with thousands of major banks, credit unions, and other financial services. It is a reliable financial intermediary that helps you process your transactions.
What features are available in Plaid?
Plaid can link your bank account to your account and get up-to-date information including transaction history, deposits, withdrawals, and more. It acts as an intermediary between your bank account and the app, whereby you can securely access your bank details without the need for a separate program. Previously, Plaid received integration with some Bitcoin exchanges, in particular with Coinbase. With Plaid, users can securely share information such as balances, transactions, and the type of crypto assets they hold.
How does Plaid work?
The first thing you do is launch the app and select your financial institution. Places that work with Plaid include the banks, credit unions, and financial institutions listed on the app;
Enter your bank access details such as username and password. You can be calm about your data because all financial information is encrypted and transmitted securely;
Plaid then acts as a link between your bank and the application. You can use it to access your banking information while away from home.
Plaid is a popular payment integration service that helps you link your bank account to various payment apps. As a result, your financial information is authenticated and transferred securely between parties. Plaid and its competitors are a fast-growing financial services industry, so it’s time to take advantage of this platform.
Advantages and disadvantages of Plaid
This fintech startup has its own pros and cons. Let’s talk about them in more detail.
- Convenience, because you can easily connect your bank accounts to Plaid and manage your funds more efficiently;
- Quick access to finance. Thanks to the development, you can quickly access financial information, check the account balance, and get acquainted with the history of transactions;
- Safety. Plaid uses only modern technologies and encryption methods, so you can not worry about the security of your data, as well as the confidentiality of information;
- Integration. The platform easily integrates with various applications and services, which allows you to find the best methods of financial management.
- Not all banks are supported by the platform. For some users, this can be a real problem;
- Despite the high security, any service is always vulnerable and can be subject to cyberattacks. Therefore, despite all the protection methods, your data can be stolen;
- Limited opportunities. Some users expect more from the application, so not everyone is satisfied with the proposed functionality.
If you want to start managing your finances more effectively, then we recommend that you pay attention to the Plaid platform. It will continue to develop and offer new and exclusive features for its users. Of course, it has its drawbacks, but there are not so many of them, and most of them are covered by advantages.