Silicon Valley Bank (SVB) is partnering with FinTech infrastructure firm Plaid for instant authentication of bank account information using ACH tokenization.
SVB is the first financial institution (FI) to provide ACH account token integration with Plaid. The joint solution tokenizes the account connection process and enables secure payments. Tokenization swaps out sensitive account data with random characters called tokens.
“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,” Shaleen Prakash, head of digital channels and segment operating solutions at Silicon Valley Bank, said in a press release on Wednesday (Sept. 15).
See also: Silicon Valley Bank, Kantox Team on Currency Risk Management Tech
The new solution links Plaid’s instant account verification and SVB’s ACH API capabilities via a tokenized process that secures payments while minimizing the handling of users’ personal banking information. The integration also allows for NACHA compliance fraud detection standards for WEB debits and data security, per the release.
“The historical infrastructure for opening new accounts and moving money has been cumbersome for both developers building the experiences and the individuals using them,” said Paul Williamson, head of revenue and partnerships at Plaid.
Advertisement: Scroll to Continue
He added that today’s “new normal” encompasses online financial services, and that customers are often seeking comprehensive banking products that are safe, fast and work together instead of “having to stitch together a solution from multiple providers.”
Read more: Plaid Raises Additional Series D Funding Led by JPMorgan Private Capital, Amex
SVB has offered targeted financial services for more than 40 years and has offices in innovation centers worldwide. The bank offers commercial, international and private banking services and works with over 5,000 FinTech partners, per its website.
