Research
Interview Synopsis

Plaid – use case expansion & competitive differentiation

  • Public Equity
  • TMT
  • North America

Plaid sits within the financial data aggregation space, along with Finicity, Yodlee, Geezeo and Tink. “There aren’t a ton of people doing this. It is a complex and complicated problem that’s being solved, and those are the big players in this space”, a divisional head from MX Technologies Inc told Third Bridge Forum.

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Checking up on Plaid’s offerings and competition

Giving an overview of market trends, drivers and demand dynamics, the specialist explained that “there was already a trend towards folks, at least in the retail banking space, moving away from receiving banking services from traditional [banks]”. They added that “folks were… having a stronger desire towards accessing their financial data either through desktop or mobile solutions from their own convenience, and COVID exacerbated that once banking branches were closing down.”

Another driving force is regulatory. “The move to open banking will help data aggregators, Plaid, everyone who is trying to make an impact  here, because it’s basically forcing financial institutions to consider how they’ll grant access to that data to  their end users.”

The use cases for data aggregation benefit both consumers and banks, we heard. The former group has a more holistic view of their spending, “but, from the bank’s perspective as well, they can then use that data to help make recommendations”. In addition, companies like Plaid can “add additional solutions that help with marketing and targeting folks who  would be a good fit to refinance their loans or other lines of credit with financial institutions as our customer.”

As well as detailing the pricing environment, the specialist discussed the competition, including each player’s strengths, and Visa’s acquisition of Tink.

To access all the human insights from Third Bridge Forum’s Plaid – use case expansion & competitive differentiation Interview, click here to view the full transcript.

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The information used in compiling this document has been obtained by Third Bridge from experts participating in Forum Interviews. Third Bridge does not warrant the accuracy of the information and has not independently verified it. It should not be regarded as a trade recommendation or form the basis of any investment decision.

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