What Is Plaid’s Role In Banking Security?

I’ll be 100% honest with you; modern technology is all witchcraft to me. The idea that data is floating around my head 24/7 is a concept I can’t wrap my head around. Attempting to understand it would keep me awake at night (and I LOVE my beauty sleep)! With that being said, let’s dive into Plaid’s role in banking security and data privacy. We’re all about ensuring a secure money app experience so our Navigators can stress less, master cash flow basics, and improve their financial mindsets.

Now, I understand that this “internet land” has many dangers. Some stand-up individuals and companies work to protect us, mainly from the bad people and things lurking within the interwebs.

Because of this, companies like Plaid are crucial to banking in this digital age and upholding data privacy and security. If you’re like me, though, it’s probably a bit difficult to understand.

Well, take this walk with me. I’ll show you what I’ve learned about how Plaid works and why they even need to exist. Plus, we’ll dig into how they handle your ever-precious data.

How Plaid’s Banking Security Works

So, how exactly does this magical protection spell work? Plaid acts as a security shield between you and whatever financial app (Nav.it) you want to use. Let’s say, for instance, you want to use Venmo for sending and receiving money. Plaid acts as the bridge between Venmo and your bank account. This way, no single place has ALL of your data, maintaining data privacy and security.

Your bank username and password aren’t shared with the financial app! Because of this, no one can backdoor their way to your money if things go left. 3rd party researchers, financial institutions, and app developers audit Plaid to ensure everything is on the up and up. My favorite part of all of this is the bug bounty system. Any old Joe that finds a bug in the Plaid API (application programming interface) can turn in their findings for a bounty. Now that’s keeping a money mindset! Plaid encourages people to try to find flaws because they’re confident in their product. That’s the kind of swag I want to see from someone watching my money.

What does this all mean for you? You can focus on your financial mindset and cash flow basics instead of cybersecurity. You can feel safe using Venmo, Acorns, Nav.it, and more to organize your money and keep a close eye on how it’s moving. As we all know, maintaining a reasonable budget involves keeping tabs on how your money is being spent. Plaid’s level of security allows you to put down the pen and pad and monitor it all in real-time.

Why They’re Even Here

“But can’t my financial app just connect directly to my bank? Why do we need to involve another company?” I hear you asking, earnestly confused but trusting that I will have the answer. Thank you for your good faith, for I have the answer you seek.

The issue here lies with how different companies structure their data. Bank A may do things one way, App A another. Take that idea and consider the over 10,000 financial institutions that need to connect to the ever-rising number of financial apps. It’s simply not feasible for them to have the security they need AND be plug-n-play with so many applications.

Come on, we can’t even get universal chargers for our cell phones or electric vehicles! That’s why Plaid’s banking security features are so essential. Plaid can dedicate their time and resources to being the “adaptor” between the banks and your favorite app. This allows the banks to do what they do while the app focuses on new ways to improve your experience.

This is just another benefit for you. Behind your tiny black mirror, you get a team of tech wizards dedicated to safeguarding you from the dark side of the web. Plus, this ensures you can focus on your financial mindset by using our secure money app. Plaid connections result in accurate numbers, allowing you to exercise the principles of cash flow basics to better plan your next moves. You can also avoid jumping back and forth between multiple platforms. Bridge programs like Plaid make what usually is exhaustively stressful super easy and barely an inconvenience. #RyanGeorgeVoice

Plaid's banking security allows Nav.it to be an extra secure money app. You can worry less about data privacy and instead focus on improving that financial mindset and mastering cash flow basics. It's a win-win.

How Plaid Handles Data Privacy and Security

Well, this is it, isn’t it? With eyes on social media and how they use our data, consumers are ever concerned with how companies handle their data. Plaid is all about banking security and data privacy. Their data encryption is two-fold, with TLS (Transport Layer Security) and AES (Advanced Encryption Standard 256). TLS protects information as it travels between servers. Meanwhile, AES exists for data that needs to be stored for any period of time. Even IF Plaid’s system is compromised, retrieving your data would be a Swordfish level task. For those who don’t know that movie, just know it will be really, REALLY hard. But you should totally see that movie; it’s pretty dope. I mean, we’re talking about John Travolta, Hugh Jackman, Halle Berry, and Don Cheadle.

Layered on top of that is Multi-Factor Authentication (MFA). MFA gives more profound protection to lock out unauthorized access beyond just your username and password. Their partnership with cloud computing companies adds another layer of 3rd party security. The Plaid API and its related components are all cloud-hosted. This means you’d need to go through two companies’ defenses to get a shot at someone’s info. I legitimately imagine that Plaid’s data security has more levels than a Dragon Ball Z villain has transformations, making money apps extra secure.

This techy side illustrates my earlier point: you focus on your money, they’ll handle the rest. You can feel confident utilizing these various apps to exercise and improve your financial mindset. No weapon formed against your stacks shall prosper. In uncertain times like these, finding security anywhere provides peace of mind that is in short supply, especially regarding finances.

What’s It All Mean?

Plaid’s commitment to banking security means fintechs like Nav.it can grant users better access to financial services and ensure a secure money app experience. From lower fees and better rates to access to credit and loans, Plaid delivers an effortless interface. It connects financial transactions from a user-friendly dashboard focused on offering exceptional services.

Plaid is at the heart of cash flow basics. Meaning: the total amount of money transferred into and out of a business, primarily affecting liquidity. Any blind spot in your financial vision will make it difficult to make sound decisions for yourself and your business. Having this type of secure connection to your financial institutions will give you the 360° perspective you need to eliminate as many variables as possible.

Let me put it even more simply: close your eyes and think of your favorite brand. You’re confident that their name will give you quality and the biggest bang for your buck. Plus, you don’t have to question what you’re getting. You should have the same warm fuzzies the next time you find a finance app that works with Plaid. Consider this a stamp of approval. You can feel safe getting your swole on with a bit of financial fitness. Maintaining a realistic budget, investing, saving, and donating are all powered by Plaid. Isn’t that nice of them?

Put It Into Action

Image shows three different colors representing different types of savings: green = emergency fund-80%
orange = wedding-75%
blue = new puppy-50%
The text at the top reads Auto Saves We'll help you take the stress out of saving.

Now that you understand Plaid’s banking security basics, it’s time to create an Auto Save to reach your financial goals and bolster your money mindset. Whether you need cash for a trip, a new puppy, or the expense of moving to chase your dream job, auto-saves make it easy by automating savings. Simply specify how much money you want to save and the frequency it should be drawn from an account of your choosing. Your savings stash is available for withdrawal anytime, and you can save for as many goals as you want!

We believe that the power of intention improves our financial health. We also believe in empowering your money mindset. This can enhance your ability to earn and allocate dollars for the things that bring you joy. “Splurging” on a trip, clothes, or art supplies isn’t impractical if it brings you closer to the people you care about. Maybe it encourages confidence or brings you mental zen. Regardless, you don’t need to live in austerity to improve your financial outcomes. Budgeting can ensure you can buy things that will improve your outlook and experience when it counts. Auto-saves help you save for those experiences. And guess what? Plaid’s stellar banking security and data privacy helps us create a secure money app perfect for helping you improve that financial mindset and master cash flow basics.

Related Reads

Get Your Financial Life Together

Five Money Myths Holding You


Get it on Google Play button links to Nav.it At Work on the Google store on android.
Get it on Apple Store button links to Nav.it At Work on the Apple Store.

Writer, rhymer, gamer: the easiest way to define the man known as Kenneth Medford. I’m a simple man who loves to learn and loves to help and I wander the digital world trying to find ways to sate my hunger for both. Basically, I’m Galactus but helpful.

Check out my other work here or reach out to me on LinkedIn.

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