Plaid– Fintech startup based out at San Francisco, that offers an API available for banks to share financial data with developers, has raised $44 Million in a new round led by an account at Goldman Sachs. Plaid had initially also been funded by Felicis Ventures, Homebrew Capital, and Box Group (Spark Capital).
The new funding is a boost for apps and websites that use Plaid, which has now raised about $60 million total, as they work to ensure access to customer data held by banks.
The API offered, connect consumers, traditional financial institutions, and developers to allow its users, supporting access to data from banks. The company is already providing access to data from leading banks like American Express, Wells Fargo, Bank of America and Chase. Many financial-services providers use Plaid to access or check customers’ account data when providing mobile and web services like budgeting, investing, and lending.
The buzz around fintech has gained substantial attention of traditional financial institutions, startups, venture capitalists and regulators. Banks and regulators are hard-pressed to revisit their operating model and policies respectively to create a conducive environment of collaboration and dynamism amidst the participants in the fintech ecosystem. At the same point in recent months, banks and fintech firms have clashed about some of the ways that the firms access bank-customer account data, including concerns about security of passwords and surges of data traffic to banks’ websites.