Fiserv partners with Plaid

Friday 13 October 2023 07:52 CET | News

Global provider of payments and financial services technology Fiserv has entered a partnership with US-based data network provider Plaid

Through this collaboration, the two companies aim to enable secure and reliable data sharing through APIs for financial institutions and consumers. Clients who bank with the nearly 3,000 bank and credit union customers hosted by Fiserv can receive credential less API-based connectivity to the 8,000 applications and services on the Plaid network via AllData Connect from Fiserv. This allows consumers to share their financial information with the third-party financial apps and services of their choice. 

Global provider of payments and financial services technology Fiserv has entered a partnership with US-based data network Plaid.

The partnership’s objective

According to Fiserv’s officials, the partnership with Plaid facilitates access to a broad range of capabilities and experiences through third-party apps and services, working towards an Open Finance ecosystem that prioritises data privacy and consumer access. By connecting to the Plaid network via AllData Connect from Fiserv, financial institutions have a simplified and secure experience when using third-party apps and services.

Furthermore, Fiserv and Plaid plan to advance secure and transparent data sharing in line with anticipated regulatory guidance, including that outlined in Dodd Frank 1033. Representatives from Plaid stated that the partnership with Fiserv aims to bring secure, reliable API connectivity to financial institutions on behalf of their customers.

Through its AllData Connect service, Fiserv also facilitates data sharing through relationships with Akoya, Finicity, and MX

Plaid’s latest developments

As a global data network, Plaid’s main objective is to facilitate a more inclusive, competitive, and mutually beneficial financial system by simplifying payments and lending, as well as decreasing fraudulent activities. Currently, the company works with approximately 8,000 companies, including fintechs like Venmo and SoFi, its network spanning over 12,000 institutions across the US, Canada, UK, and Europe.

At the end of August 2023, Astra partnered with Plaid to provide customers with instant authenticated payments via Plaid Identity Verification. Through this collaboration, users receive a unified service that was developed for securely embedding instant payments and transfers into fintech products.

During the same period, Plaid also upgraded its income verification suite to improve automation while reducing fraud risk. The company incorporated cash flow data directly from the source into conventional credit reports into Plaid Income, offering consumers the ability to share their financial information during decision-making in real-time.

Moreover, Pinwheel, an income and employment API provider, partnered with Plaid for direct deposit solutions, with the collaboration marking the former as the go-to provider for direct deposit switching (DDS) services within the latter’s Partner Network. 

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Keywords: partnership, data sharing, data protection, financial data, online security, API
Categories: Fraud & Financial Crime
Companies: Fiserv, Plaid
Countries: World
This article is part of category

Fraud & Financial Crime




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