DriveWealth Forges Partnership with Plaid

https://finovate.com/drivewealth-forges-partnership-with-plaid/
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It’s getting hard not to wonder if Plaid is better off as a bachelor …

Last week, we highlighted how the financial data connectivity platform rebounded from its failed union with Visa to launch a range of new initiatives including new offerings (new income verification solution Plaid Income), new partners, and a diversity-oriented accelerator program, FinRise.

Today brings news that Plaid has teamed up with global brokerage infrastructure platform – and fellow Finovate alum – DriveWealth. Courtesy of a single API integration, customers of both firms will be able to streamline and simplify the online investment account funding process for their clients.

“The combination of DriveWealth and Plaid to enable anyone from fintechs and banks to investment advisors and RIAs to quickly and securely add investment capabilities to their current offerings, via a simple API, will give more consumers equal access to investing in the U.S. markets,” DriveWealth CEO Bob Cortright said.

The integration will enable customers of both DriveWealth and Plaid to authenticate end user bank accounts using Plaid’s technology, and leverage tokenization to provide fast and secure verification of bank funding sources using DriveWealth’s API. The combination not only improves the ACH success rate, it also boosts transparency into the fund transfer process while safeguarding client data.

Plaid Head of Revenue Paul Williamson credited the wealth management industry for its advances in technology in recent years. But he pointed out that there is still more friction in the process than there needs to be. “Companies like DriveWealth are changing that and this partnership combines to power of Plaid with DriveWealth to make digital investing experiences even easier,” Williamson said.

In addition to this week’s partnership with DriveWealth, Plaid also announced that it is working with Dun & Bradstreet to bring the benefits of alternative data to small business credit risk analysis. The new integration will enable small business owners to safely share financial account information and potentially improve their credit profile with the commercial credit reporting agency.

“Small businesses need all the support they can get, and this integration makes the process of creating and building a business credit profile secure and simple, which can lead to better access to financing and more business opportunities,” Global Head of Policy at Plaid John Pitts said.

And by the way, Plaid is not the only fintech in today’s partnership announcement that is populating the headlines of late. DriveWealth began 2021 with the acquisition of institutional broker dealer Cuttone & Company. The deal will bring additional market and regulatory expertise to the Chatham, New Jersey-based brokerage infrastructure API provider – as well as a network of institutional trading partners.

More recently, DriveWealth teamed up with Aghaz to support the Seattle-based roboadvisor’s investment app for Muslim customers, partnered with cross-border roboadvisor Hemista to bring fractional share investing in both U.S. and Indian stocks to Indian ex-pats, and collaborated with GenZ-focused investment app Alinea.

https://finovate.com/drivewealth-forges-partnership-with-plaid/