Silicon Valley Bank (SVB), the chosen bank of innovators and their investors, and Plaid, a data network powering the digital financial ecosystem, have together announced a partnership that will allow clients to instantly authenticate bank account information, and securely generate payments via a tokenized payment solution.
The joint solution connects Plaid’s instant account verification and SVB’s automated clearing house (ACH) API functionality through a tokenized system. In addition to this, SVB has become the first bank to provide ACH account token integration with Plaid. This selective combination has been put forward to minimise the handling of beneficiaries’ sensitive bank data; thus increasing the level of cybersecurity associated with the process.
“This integration will enable innovation economy clients to leverage a best-in-class solution that is a result of a solid partnership between two of the most forward-leaning firms in the financial ecosystem,” said Shaleen Prakash, Head of Digital Channels and Segment Operating Solutions at Silicon Valley Bank. “We are proud to expand our relationship with Plaid, which so many of our clients already value and use, and facilitate clients’ compliance with growing industry demands around information security.”
Together, Plaid and SVB are providing their clients with an efficient and secure way to process payments directly from their SVB accounts. The integration also enables joint clients to be compliant with requirements set out by the National Automated Clearing House Association (NACHA) in relation to fraud detection standards for WEB debits and data security.
The formation of this partnership follows a similar move by Plaid, who recently also partnered with the technology company Astra to offer an integrated solution for developers to easily enable programmatic money movement for their customers.
“The historical infrastructure for opening new accounts and moving money has been cumbersome for both developers building the experiences and the individuals using them. Digital finance is the ‘new normal’ and clients are increasingly looking for secure, integrated solutions with a fast speed to market from trusted service providers, versus having to stitch together a solution from multiple providers,” said Paul Williamson, Head of Revenue and Partnerships at Plaid. “With Silicon Valley Bank, thousands of fintech innovators now have access to an integrated payment processing solution that combines the power of SVB and Plaid to deliver seamless, convenient digital finance experiences.”