What is Plaid?

What is Plaid?
Plaid is a trusted financial technology company that provides an API to connect applications such as Covet with users' bank accounts, enabling seamless and secure access to financial data. It is commonly used by fintech apps for services like personal finance management, payments, lending, and wealth management, and yes, Covet. 

The Plaid connection does not faciliate any movement of funds. It simply transmits balance information to Covet in a secure way. Your money stays right where you put it, in your bank or financial institution.

How It Works:

1. User Authentication: Plaid enables users to link their bank accounts to an application securely through a user-friendly interface.
2. Data Aggregation: Once connected, Plaid retrieves financial data such as account balances, transaction history, income, and liabilities.
3. Data Security: Plaid uses strong encryption and security protocols to protect sensitive financial information.
4. API Integration: Developers integrate Plaid's API into their applications to access real-time or historical financial data, authenticate bank accounts, or enable ACH payments.
5. Use Cases: Plaid is widely used for budgeting apps, investment platforms, loan underwriting, and payment verification.