Plaid and Algebrik Launch CU-Focused Loan Origination Platform

Plaid has launched a partnership with loan origination platform Algebrik AI.

The collaboration, announced Monday (Feb. 4), will integrate Plaid’s consumer-permissioned data with Algebrik, allowing for easier identity verification, financial data access and better decision-making for lenders and borrowers.

“Credit unions, a key focus of this partnership, stand to gain significant operational advantages,” the companies said in a news release.

“With Plaid’s integration, they can access borrowers’ financial data with explicit consent, improving underwriting accuracy and reducing time-to-decision. Borrowers will experience a guided, frictionless journey, from application to loan disbursement, facilitated by Algebrik’s AI-driven platform.”

With the partnership, Algebrik can leverage Plaid’s financial data technology, streamlining borrowing while ensuring compliance and data security. Armed with consumer-permissioned access to real-time financial data, credit unions (CUs) and other lenders can make lending decisions with greater speed and accuracy, according to the release.

“Credit unions are the lifeblood of financial inclusion, and we’re excited to bring them cutting-edge technology that enhances their ability to serve their members by incorporating cash flow data into credit decisions,” said Pankaj Jain, founder and CEO of Algebrik AI. “Partnering with Plaid allows us to reimagine the loan origination process — faster, more secure, and deeply personalized for every borrower.”

The partnership comes at a time when credit unions are in a good position to modernize, as Dan Hanks, senior vice president of global product management at i2c, told PYMNTS in a conversation last month.

“Banks want to offer more competitive products, increase profitability and, critically, own the customer experience — especially credit unions that place a premium on member satisfaction,” Hanks said during a discussion for the Fireside Chat series.

For financial institutions, he added, self-issued credit cards are no longer a luxury, but a necessity. Community banks and credit unions for decades teamed with third-party issuers to offer credit cards, often giving up control over fees, rewards structures and cardholder engagement. While these collaborations provided convenience, they came at a cost — revenue leakage, less brand control and limited ability to innovate.

By bringing card issuance in-house, community banks and credit unions can create digital-first offerings, enhance profitability and own the cardholder experience.

“It’s growing in importance and growing in popularity,” Hanks said. “Smaller banks, some of whom thought they were too small before, now see a clear path to self-issuance.”