Plaid is a service that connects fintech apps with banks. It acts as a middleman that lets users authenticate and link their bank account with the different financial apps that are growing by the day. In this post, we will look at the list of apps that use Plaid.
A large number of popular financial apps use Plaid to allow their users to connect their bank accounts. This includes some very popular names like Venmo, Cash App, Robinhood, Coinbase etc. Whether it’s a loan app, budgeting app, online wallets, mobile banks, investment apps etc. they all rely on Plaid as a pipeline to connect to bank accounts.
As per Plaid, it powers more than 3000 apps and 11,000+ banks or financial institutions. About 1 in 4 people in US have used Plaid to connect their financial accounts.
So let’s look at some of the popular apps that use Plaid:
Online Bank Apps that Use Plaid
Cash Advance Apps that Use Plaid
Loan Apps that use Plaid
Investment Apps that Use Plaid
- M1 Finance
Budgeting Apps that Use Plaid
Shopping Apps that have Plaid
Payment / Money Transfer Apps that make use iof Plaid
- Cash App
Spending / Expense Management Apps that use Plaid
Plaid Use Cases for the various apps
Plaid is used by Apps in a variety of ways. It has different use cases for the various apps that use it, based on the purpose for which data is to be used.
- Helps get a comprehensive picture of users’ financial health
- Helps user link bank Accounts by confirming identity, easy authentication and facilitates bank to bank payments
- Helps to better understand user investments to offer better wealth advisory
- Helps make it easier to manage expense, payroll, invoicing for companies
Plaid Privacy Concerns
The amount of data that a user ends up sharing with Plaid across different apps can add up to a lot. So it is definitely a valid concern that comes to users on how the data is being used.
There were some controversies in which Plaid agreed to settle by paying USD 58 million to users of Venmo, Robinhood etc. on account of interface and excess data collected. While Plaid says that the issue has already been corrected, they agreed to settle.
Plaid on its part has a website page explaining how they use data collected by them and it is only based on user permission. However, you would know from experience that users often overlook the fine print when signing up.
We don’t share your personal information without your permission, and we don’t sell or rent it to outside companies.Plaid
Plaid- View the financial apps you have connected
Plaid has also come up with a privacy portal for US users. It allows you to get a complete view of all the finance apps that you have connected with Plaid.
You can manage the connections using this service. It is a welcome step to help users gain control of their data.
Once you’ve created a Plaid Portal account, you’ll be directed to a dashboard that can show you the financial accounts you’ve connected with Plaid and each of your chosen applications, and the types of data shared with each application. Additionally, the Plaid Portal provides you with controls to terminate the connection between applications and your financial accounts and delete data stored in Plaid’s systems if you so choose.Plaid
Is Plaid safe to use
Plaid is a legit service that has grown exponentially over the years. As per Plaid, they use various techniques like encryption, authentication, and audits to protect user data.
Plaid is valued at more than $13 billion and has a number of marquee investors backing it.
The number of financial apps have been growing through the roof and Plaid has a built a huge network by making it easier for them. Regulation is still playing catch up with the growing trends.
Given the huge network of banks and fintechs they support, it can be a big reputation risk for Plaid to have privacy-related issue.
There is no such thing as fool proof and it is important for your to take personal responsibility for your data. So it is important you understand what you are signing up for, by going through their terms.
You can choose where you want to use Plaid or have a non-primary bank account linked through Plaid, where you have no option.
Pro Tip: In case you wish to avoid giving out your data to Plaid, it is best you manage the connections by creating an account with Plaid and remove access as and when needed. Another way is to use a separate bank account for connecting with apps that use plaid.
As you can see, Plaid is used by a large number of apps and is key player in the financial apps ecosystem. This list is only expected to grow with the rise of fintech apps and growing trend of integration. Even though there are rising concerns of users about data security and privacy, the convenience and use cases that Plaid offers to various apps makes it difficult to replace.