DriveWealth, Plaid | March 31, 2021
DriveWealth, a global brokerage infrastructure platform, announced a new collaboration with Plaid, a financial data network, to provide users of both platforms with convenient online investment account support.
Customers of both companies can use Plaid to authenticate their end users' bank accounts and receive tokens that provide swift, safe bank funding source authentication through the DriveWealth API. This improves the Automated Clearing House's performance rate, increases the transparency of transactions, and protects consumer privacy.
“While wealth management technology has vastly advanced over the last decade, there is still so much uncertainty that keeps people from investing their money as they want,” said Paul Williamson, Plaid's head of revenue, “Companies like DriveWealth are shifting that, and this alliance blends Plaid's and DriveWealth's strengths to make digital investments much easier.”
According to Bob Cortright, CEO of DriveWealth, the collaboration would allow “FinTechs and banks to investment advisors and RIAs to easily and securely add investment capabilities to their current offerings through a simple API,” allowing more customers equal access to investing in American markets.
DriveWealth, based in Chatham, New Jersey, bills itself as a “pioneer in fractional investing and data finance” committed to democratizing access to US equities for investors worldwide.
Plaid Exchange, an API platform developed specifically to help financial institutions access customer-permissioned data, was introduced last year.
“We believe APIs are the future of open finance, and we want to make it as simple as possible for all financial institutions to integrate APIs into their broader digital transformation agendas, regardless of budget size and resources,” said Niko Karvounis, product lead at Plaid.
According to surveys, one of the most difficult issues facing banking executives is combining legacy systems with emerging FinTech apps.