American Express and Plaid initiate customer-focused digital banking upgrade

American Express and Plaid initiate customer-focused digital banking upgrade

New York-based financial services corporation, American Express, and data network firm, Plaid, have announced a customer-permissioned data sharing agreement set to enhance digital finance options.

American Express is partnering with Plaid, a firm that powers the digital finance landscape, for an API-based integration. The purpose of this partnership is to provide customers with a safer, more reliable connection to a multitude of financial applications, thus increasing security, control, and transparency in digital finance.

American Express, known for its credit card and traveller’s cheque services, is continuously working to improve the customer experience in the financial landscape. Plaid, on the other hand, provides an infrastructure that allows consumers to interact with their bank accounts, check balances, and make payments through financial technology applications.

The collaboration will result in the integration of Plaid’s services with the American Express’ Account Financials API. This will give customers clearer control over how their financial data is shared, while also eliminating the need for customers to share their American Express login credentials with any third-party entity. The integration will utilise American Express’ secure authentication methods, intended to enhance transaction security.

Additional benefits to American Express customers include greater reliability, increased transparency, and fewer sign-on disruptions. Connections, as a result of the API integration, will be more stable and will potentially endure for longer durations, facilitating easier sign-ons.

Danielle Cloud, senior vice president, enterprise data governance & platforms, American Express said, “This agreement reflects American Express’ commitment to providing our customers with the security, control and transparency they want when sharing their account data with financial apps of their choosing. With Plaid, we’re taking another key step in our effort to create a safer digital experience for our customers in a world where people increasingly rely on a variety of digital tools to manage their finances.”

Christy Sunquist, head of U.S. financial institution partnerships at Plaid said, “We are thrilled to partner with American Express, a storied brand fundamental to the financial lives of so many, to facilitate secure connectivity for their account holders to thousands of apps in our network.”

The launch of this API-based integration is scheduled for commencement in 2023.

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