U.S. consumers, on average, use three fintech apps to manage their finances. American Express and Plaid announce customer-permissioned data sharing agreement to boost digital finance options for customers.

The API-based integration will provide American Express customers with more security, control, and transparency, in addition to reliable connections to thousands of financial apps. The launch of the API-based integration with Plaid is set to begin in 2023.

American Express announced an agreement with Plaid, a data network that powers the digital financial ecosystem, for an API-based integration that will provide new digital banking options for customers while enhancing their account security.  

„Millions of American Express customers will now have the ability to connect with even more safety to Plaid’s 8,000+ connected apps and services across the digital banking ecosystem, without having to share their American Express password with a third-party. This is particularly important as U.S. consumers, on average, use three fintech apps to manage their finances^[1].” according to the press release.

Integrating the services Plaid powers with the American Express’ Account Financials API offers customers transparency and control over where and how their financial information is permissioned and shared. The integration also removes the need for customers to share their American Express credentials with any other party besides American Express in the ecosystem. The integration allows the customer to leverage American Express’ secure authentication procedures designed to enhance the security of their transaction before releasing their account financial information to the third parties they trust.   

American Express’ Account Financials API allows customers to share their financial data, while also maintaining the privacy of their user credentials. The many benefits to American Express customers include:

Enhanced Security – Supported by the OAuth2 protocol, the Amex Account Financials API provides customers with more control over where and how their financial information is being accessed and shared.

Greater Reliability – Customer directed account information is shared in real-time.

Increased Control and Transparency – Customers can now more clearly understand and better manage their connections to financial service provider apps and have better visibility into where their data is going and what data is being shared.

Fewer Sign-on Disruptions – Thanks to the API integration, connections are more stable, and may last for longer periods of time, enabling easier sign-ons.

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Plaid works with thousands of companies like Venmo, SoFi, and Betterment, several of the Fortune 500, and many of the largest banks to make it easy for people to securely connect their financial accounts to the apps and services they want to use. Plaid’s network includes 8,000 apps and more than 12,000 financial institutions across the US, Canada, UK and Europe. Headquartered in San Francisco, the company was founded in 2013.

[1]https://plaid.com/blog/fintech-effect-report-2022/