What Is Plaid? How It Works And How Safe It Is

Camino Financial09 Nov 2023
What Is Plaid? How It Works And How Safe It Is
Plaid can help you securely connect various third-party applications to your bank account. As the digital landscape evolves, understanding how this tool works and how to use it becomes essential for anyone seeking to harness the power of integrated financial services. Here you'll find step-by-step instructions to link it, how it works, why it is safe, its security features, and what banks support it.

What Is Plaid?

Plaid is a technology platform that allows borrowers and lenders to connect reliably. It was co-founded in May 2013 by William Hockney and Zach Perrit. In addition, important financial apps and financial institutions use Plaid. According to CNBC, Plaid reported that its customer base doubled from 2017 to 2018, averaging roughly 20 million consumer accounts.

What Is Plaid Bank Verification?

Financial institutions use Plaid to view your personal financial data through your bank accounts. These institutions will be able to see only bank account information related to the following:
  • Account holder: name, address, phone, and email.
  • Transactions: amount, date, type, and description of the last 24 months
  • Account Details: name, type, routing numbers, and balance
This technology allows you to save time because there's no need to gather financial data, send documents, or call your bank representative to authorize them to share your financial information. Banks also verify the accuracy of your account information through the Plaid system, which connects you to your bank and checks that the information provided matches your file, ensuring a quick and easy validation process.
#DidYouKnow Camino Financial uses Plaid during the small business loan application process.

Is Plaid Safe?

Yes, PLAID is 100% safe. They use many safety measures to handle private information. It remains secure because the platform hires third-party code reviewers and independent auditors. Plaid requires a key authorization to verify the authenticity of a financial institution and has embedded Cryptology to validate authenticity further. Plaid adheres to strict protocols and uses encrypted tunnel technology. They conduct routine tests to make sure their operations remain effective. Plaid uses independent security testing and a bug bounty program to follow up and solve any security issues.
Just like Camino Financial, Plaid takes your security seriously.

How Does Plaid Connect To Banks?

 The tool encrypts the data each time and only shares the specific data the lender requires, not all your information. With Plaid, you decide who receives your data and for what length of time.
Moreover, Plaid doesn't sell or share your information with anyone unless you authorize them to do so.
Once you sign up to use the Plaid app, select your bank or credit union from over 11,000 institutions. Then, you set up your private login and password information. The connection between your bank and the Plaid app is secure. Plaid collects information to verify your identity to safeguard your information further and prevent fraud.

How To Use Plaid With Camino Financial: Link Plaid To Your Bank Account

In the following steps, you will be able to make a Plaid banking verification:

Open The Camino Financial Link You'll Receive

Click the link you'll receive through a Camino Financial email or SMS to start your bank verification. prequalified email screen

Login To The Member's Portal

Remember that to enter the Member's Portal; you'll have to verify your identity through a verification code we'll send to your registered phone number. Simply enter the code provided and click on the "Verify" button. phone verification screen

Review The Terms

Once inside your account, please click the "Review My Terms" button to review the loan terms. members portal home screen If you like your terms, click the "Accept terms" button. pre qualified terms screen

Link Your Bank Account

This screen will help you understand how Plaid works.
#DidYouKnow Plaid works with over 6,000 institutions and won't share any personal information with us or provide access to your funds.
Once you have read all the information, click "CONNECT ACCOUNT." Plaid intro screen Now it's time to link your account with Plaid. Simply click on the "Continue" button to get started. Plaid security screen Select the financial institution in which you hold your primary business accounts. If you cannot see your bank on the list, type the name in the "Search" field. Plaid bank list The platform will redirect to your financial institution's website. Enter your online bank credentials, username, and password to continue the Plaid bank verification. Plaid bank login If the process asks you to input a token, your financial institution must send it and send it to you in text messages directly to the phone number you have provided at your bank. This usually occurs if you have multi-factor authentication set up. Click the "Submit" button. Plaid phone number verification

You're Linked!

Once you link your account, you will receive the below confirmation. Next, you must click the "Continue" button. Do not click the "x" in the top right or close the window. Plaid successful screen

Wait For A Loan Decision

The platform will redirect you to the "Complete" page to confirm you have linked your account correctly connected. Please ensure you have reached this page before you close your window. If so, you've completed your Plaid manual verification! Camino Successful bank account
Your account is now successfully linked. Congratulations!
Your file is now in Underwriting. We will have a final decision within 48-72 hours. A credit agent may call you for a 5-minute conversation about your business. Feel free to contact us should you have any questions or face any technical difficulties.

Who Uses Plaid

Plaid is widely used across various industries and sectors, primarily in financial technology (FinTech). Here are some common use cases and industries where Plaid is often employed:
  • Personal Finance Apps.
  • Payment Apps. To create seamless money transfers, bill payments, peer-to-peer payments, and other transactional activities.
  • Investment Platforms. To verify and link users' bank accounts, enabling them to initiate fund transfers, automate investment contributions, and provide a holistic view of their financial portfolios.
  • Lending and Credit Services. To assess creditworthiness, verify income, and streamline the loan approval or direct deposit process.
  • Digital Wallets. To allow users to store and manage their payment information securely.
  • Accounting Software. To simplify expense tracking, bank reconciliation, and financial reporting by automatically retrieving and categorizing transaction data.
  • Neobanks And Challenger Banks. To provide services such as real-time transaction updates, spending insights, and personalized financial recommendations.

List Of Plaid-Supported Banks

Here is a list of Plaid-supported banks if you need to link your bank account to allow the platform access to your financial information: "Plaid supports over 11,500 institutions across North America and Europe."

Financial Institutions, APIs, and Banks supported by Plaid

Camino Financial

Coast Capital Savings

Scotiabank

Assante - InvestorOnline

Bayview Credit Union

Cambrian Credit Union - Cambrian Online

Newfoundland & Labrador Credit Union

Prospera Credit Union - Prospera Credit Union

Discover

TD Bank

PNC Bank

SunTrust Bank

US Bank

Vanguard

North Shore Bank

Warren FCU

Pinnacle Bank (CA) - Personal

Access Credit Union - Online Banking

CIBC

Choice Savings and Credit Union - Personal Online Banking

Assiniboine Credit Union - Online Banking

BlueShore Financial - Online Banking

Canaccord Capital

North Pea Union

Qtrade Investor

Quinte First Credit Union - Online Banking

BB&T Bank

Huntington Bank

KeyBank

Citi

Acadia Bank

Aspiration

Mercury

Capital One - Credit Cards Canada

RBC Royal Bank

Alterna Bank - Online Banking

Bay Credit Union - Online Banking

BMO - Fund Account Access

Nelson & District Credit Union - Nelson & District Credit Union

President's Choice Financial

QuesTrade - Client Portal

Regions Bank

M&T Bank

Regions Bank

Santander Bank

KeyBank

Discover

American Express

Merryl Linch

What Happens If My Bank Is Not Listed?

If your bank is not listed, it could be due to one of the following reasons:
  • Your bank is not on the system, so you can't connect it.
  • Your bank supports Plaid, but it's incompatible with the application you're attempting to connect it with.
  • There may have been an update or alteration that has temporarily disrupted Plaid's ability to link with your bank securely.
#DidYouKnow If you're trying to make a transaction using Plaid Bank Transfer, you can add your account manually.

Camino Uses Plaid Bank Account Verification To Ensure Your Data Stays Safe

Along with helping your business prosper by gaining access to needed funds, we can guarantee that your personal and business information is never compromised. Using Plaid as part of our loan process ensures that your data stays secure and confidential.
You can rest assured that we only use bank technology when processing loans at Camino Financial.
By using the PLAID, we can offer competitive loan terms and rates. We can examine your business's cash flows to help determine your best course of action to achieve financial health. We use other bank technology to secure your information and protect you from identity fraud throughout the loan process. That's because you are our top priority from beginning to end. We take extreme measures to access sensitive information securely and privately. For that reason, we can confidently recommend using PLAID.
Rest assured, we cannot see your bank login information when you connect to PLAID.
Now that you know how secure our process is, you know that we have your best interests at heart. Apply For A Business Loan!   

Frequently Asked Questions

What do I do if I can't find my bank on Plaid?

Plaid works with over 10,000 banking institutions. If you're having trouble locating your financial institution, contact your bank or us directly. We can troubleshoot any problems you may encounter and assist you if necessary.

Should I let Plaid access my bank account?

Yes. Many financial services apps and services use Plaid software to facilitate secure and convenient account integration. When you allow Plaid to access your bank account, you must provide your online banking credentials (username and password) or use multi-factor authentication through your bank's app. Plaid uses this information to establish a secure connection with financial accounts and retrieve your account data, such as transactions and balances, on behalf of the app or service you are using.

What types of information can Plaid provide lenders?

Plaid confirms your name, phone number, email, and physical address. This allows financial institutions or apps to verify your:
  • income,
  • assets,
  • balances,
  • history of transactions,
  • credit and loan accounts,
  • balances owed,
  • transaction history,
  • and interest rates.

Does Plaid need an account and routing numbers?

Plaid doesn't process transactions. Instead, its authorization process uses ACH authentication to protect a customer's account and routing numbers. This eliminates the need to make micro deposits which involve waiting for small trial deposits to post.

How long does it take Plaid to verify a bank account?

Plaid starts checking your information once it connects to your bank account and routing number information. The system verifies your bank credentials almost instantly.

Why is Plaid asking for my bank password?

Plaid is asking you to log into your bank account, but neither Plaid nor the financial institution that asked you to use it will be able to see your login details. By logging in, you only enable Plaid to see certain details and information regarding your bank account.

How does Plaid work?

Plaid verifies bank accounts by securely retrieving financial data from the user's bank. It works as an intermediate between financial institutions or apps that need access to bank information. It employs end-to-end encryption and tokenization for data security. The tool organizes the retrieved data in a standardized format, making it easier for third-party applications to use it.

What banks work with Plaid?

Plaid works with many banks, including JPMorgan Chase, Bank of America, Wells Fargo, and more. To see a complete list of partners, visit their website.

What should I do if Plaid bank verification doesn't work?

If you're having trouble with bank verification through Plaid, you can try a few things. First, select the bank account you're trying to verify in Plaid's settings. Then, try reloading the page. If that doesn't work, try logging out and back in again.

What is a Plaid Bank Transfer?

Plaid Bank Transfer is a new service provided by Plaid, facilitating lenders in making bank-to-bank transfers and disbursing loan proceeds with reduced risk. It offers more flexibility and real-time integration tools than traditional methods, supporting typical transfer types like ACH, same-day ACH, and wire transfers. A unique bonus feature called Payment Service lets all parties see whether the transfer will post in advance.

Is Plaid a safe platform for transfers?

The Plaid system with built-in safety features protects your valuable information. The following features combine to keep your data safe during transmission:
  • Advanced Encryption Standard
  • Transport Layer Security
  • multi-factor authentication
  • cloud infrastructure technologies
  • continuous security monitoring

How long does Plaid Bank Transfer take to transfer money?

On average, it takes six business days to process an online transfer. Along with Plaid's security measures, it uses an authorization engine. This helps reduce delays, promoting quicker settlements and reducing possible transfer holds.

Should I give Plaid my bank login?

Yes, providing your bank login to Plaid is typically required for the service to function. They use it to connect to your financial institution securely. Always ensure you're using Plaid through a trusted application or service.

What is Plaid on my bank account?

Plaid is a technology platform that connects various applications to your bank account, allowing you to share your financial data securely with third-party apps like budgeting tools or payment services.

Is Plaid legit and safe?

Absolutely! Plaid is legitimate and secure. It utilizes strong encryption and authentication practices, safeguarding your financial information.

What is the risk of using Plaid?

While Plaid itself employs stringent security measures, risks may still arise from third-party apps you connect to via Plaid. Always trust the third-party service you're connecting with, as they'll have access to your financial data.

Why does Plaid ask to connect to my bank account?

Plaid asks for this connection to enable seamless interaction between your bank and the apps you want to use, like budgeting or investing platforms. This makes managing your finances more convenient, but it's also the core function of Plaid's service.
 
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