Plaid has built a universal API that connects with thousands of financial institutions. It sometimes has to rely on screen scraping, which means that it connects to a banking website through a web browser that runs on its server and then saves the information. Those integrations can break if the website is updated, and they are not as effective as using an API.
With Plaid Exchange, Plaid can help banks when it comes to implementing an API. According to TechCrunch, it should be more secure and reduce load on the servers. Financial institutions could leverage Plaid Exchange to build new services that connect directly with a main bank account through the API. Companies would be able to see if connections are working fine, which would make it easier to identify issues with the infrastructure.
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