Better Digital Banking and Secure Information Sharing with American Express and Plaid

American Express and Plaid have recently reached an agreement to share data, offering customers new digital banking options and enhanced account security. This partnership leverages Plaid's API-based integration to enable American Express users to connect securely with over 8,000 apps and services within the digital banking ecosystem. 

This development holds significant value for US consumers, who rely on three fintech apps on average to manage their accounts. Through this customer-permissioned data sharing agreement, American Express customers can now conveniently access a wide range of Plaid-powered apps and services without compromising their account credentials. 

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In the official press release dated 8 June 2023, American Express's Senior Vice President of Enterprise Data Governance and Platforms, Danielle Cloud, emphasized the company's commitment to providing customers with the security, control, and transparency they desire when sharing their account data with financial apps of their choosing. 

The press announcement also highlighted that American Express clients will be able to share their financial data via API, eliminating the need to disclose user credentials. This empowers customers signing up for new fintech apps with greater control over their data-sharing preferences.  

Plaid's Head of U.S. Financial Institution Relationships, Christy Sunquist, expressed excitement about the partnership, stating that Plaid's mission is to ensure safe and reliable access to data for all consumers. She further mentioned the company's enthusiasm for collaborating with American Express, a renowned brand deeply intertwined with the financial lives of many individuals. 

Coinciding with this agreement, Plaid recently introduced a feature allowing users to authenticate their identity across all Plaid-powered apps and services. The company's Identity Verification solution enables verified users to sign up for additional digital financial apps without the need for re-verification. Early testing demonstrated promising results, with 70% of customers experiencing a 50% reduction in onboarding time after signing up for Plaid. 

The significance of this collaboration is further underscored by the findings of the "Digital Identity Tracker" report, titled "Advanced Identity Verification Accelerates Digital Onboarding."

According to the report, 69% of consumers value the speed and ease of the financial product sign-up process. By streamlining data sharing and onboarding procedures, American Express and Plaid address these consumer demands and enhance the overall fintech app experience.  

The agreement between American Express and Plaid to share data marks a significant milestone in the digital banking landscape, allowing American Express account holders to securely connect to the Plaid network's numerous apps.