Banking apps that use Plaid. We can safely call Plaid the intermediary between your bank account and banking apps. So what is Plaid? Is it safe? How does it work? Read on. You will find out all the information you need. This article will also talk about the top 5 banking apps that use Plaid and the future of plaid in ensuring safer connections.
What Is Plaid?
In finance and technology, there are always innovations to serve users better, and this is where Plaid comes in. Plaid is a financial technology service company that helps financial institutions like banks connect with their customers. In recent times, various Apps like Robinhood, Venmo, Wave, and Drop have used the services of Plaid to connect all the accounts of customers to their apps. This linking is safely and securely done so that no financial institution can access customers’ personal information. Plaid is so safe and secure that most apps now use them to connect their users’ accounts. Banks are not left out, too, as many also use Plaid services.
How Safe Is Plaid?
First and foremost, we are talking about plaid because it’s a reputable company. We wouldn’t bring a non-credible platform. Secondly, Plaid uses high-quality encryption protocols to secure all its financial data, unlike using the traditional banking method, where customers have to write down all their personal information on paper. Or in other cases, submitting via email is still unsafe because all your information is out there and could get into the wrong hands. On the other hand, plaid does not have your personal banking information – it only uses your online banking details in setting up your account. It verifies your information to ensure it’s correct before setting up your direct deposit.
Plaid And How It Works
Plaid helps to connect customers’ bank accounts to a banking app. As stated earlier, Plaid uses strong data encryption and high-quality security measures according to industry standards to secure users’ data. Every user who signs up on the platform for a direct deposit has their financial data secure.
Processes To Create A Direct Deposit On Plaid
- Go to the “MyCast&Crew Portal and log in your already existing information you used when logging into your account on the official bank website.
- You will be asked to enter information like
- Username
- Password
- Then you can now log in.
Plaid will never request you submit your debit/bank card PIN. Once plaid has verified your information to be correct, it uses an encrypted connection to secure all the data you shared with them. It then links up your data with MyCast&Crew to create your direct deposit. Also, know that Plaid has no business with your banking details; hence it does not register your information anywhere on its platform. Plaid only uses your online information to verify and set up your direct deposit.
5 Banking Apps That Use Plaid
Plaid has been serving many banking apps over the years, and many banks have subscribed to the services of plaid. Users can now safely link their bank accounts to the banking App to run smooth and safe online transactions successfully.
If the banking app you use works with plaid services, you will get a pop-up notification as soon as you create your account. Once you click the notification button, you will be redirected to the official plaid page, where you will be required to enter your banking login details. After paid has verified your information, your account will be successfully linked, so you can now use it.
Many banking apps use plaid, but top on the list of banking apps that use plaid services includes these five apps:
- Chime
- M1 Finance
- Varo
- FirstTech
- MoneyLion
Plaid Exchange For Faster Transactions
Plaid has launched its plaid exchange platform. It is a product that helps banks and other financial institutions set up and manage their API. The plaid company keeps upgrading its product to ensure it provides users with real-time data for faster transactions.
While you know that plaid lets you connect your banking app to your bank account, the Plaid exchange connection is on a whole new level. The exchange is designed to allow you to use a single API to connect to several accounts, which means creating more connectors.
Even though some banks allow customers to access their accounts from a website, others already have a modern API they use. Plaid also uses the same click pattern to access users’ bank accounts on the web. If banks and other financial institutions can collaborate with plaid in working out a modern API that uses tokens, the downtimes on servers will be significantly reduced.
Banks must think of a way to build a fast and reliable API because as the world is changing and technology is evolving, the coming generation will dump any slow bank and move to other banks that can provide real-time data for fast exchange.
Conclusion
Plaid does its job well in providing a safe way of linking users’ accounts to their banking apps. It has successfully carried out its role as a middleman between users and their financial institutions. Plaid goes beyond linking to assure users that their data is safe and that the app does not retain their information. So, if you no longer need the app, you can remove the connections. But In this article, we have highlighted the top Five banking apps that use plaid. Plaid has proven to be a safe and easy service platform, little wonder lots of banking apps are working with them.
