US banks have, from time to time, tried to prevent Plaid from accessing customer data, citing the need to ward off potential damaging breaches. Will the Visa transaction help calm those fears as it built its business on symbiosis rather than the disruption that Plaid preached?
The deal could therefore help some of the problems Plaid has experienced as it has expanded to work with more than 11,000 financial institutions. In theory, banking data in the US belongs to the individual. But banks sometimes prevent access to outside companies, citing the need to ward off potential damaging breaches. A recent security update at PNC Bank prevented Plaid from accessing information. With Visa’s backing such concerns may ease.