Silicon Valley Bank and Plaid Partner to Provide Secure and Efficient Tokenized Payment Solutions

Rhea-AI Summary

Silicon Valley Bank (SIVB) announced a partnership with Plaid to enhance payment processing efficiency. This collaboration enables clients to authenticate bank account information instantly and securely generate payments using a tokenized solution. SVB becomes the first bank to offer ACH account token integration with Plaid, ensuring compliance with fraud detection and data security standards. This integration aims to streamline account setup and transaction processes for fintech clients, offering them a reliable solution in the evolving digital finance landscape.

Positive

• SVB is the first bank to offer ACH account token integration with Plaid, enhancing payment processing efficiency.
• The partnership allows clients to securely generate payments and authenticate bank account information instantly.
• Integration supports compliance with Nacha fraud detection standards and data security requirements.

Negative

• None.

SANTA CLARA, Calif., Sept. 15, 2021 /PRNewswire/ -- Silicon Valley Bank, the bank of the world's most innovative companies and their investors, and Plaid, a data network powering the digital financial ecosystem, today announced a partnership to allow clients to instantly authenticate bank account information with Plaid and securely generate payments via a tokenized payment solution. SVB is the first bank to provide ACH account token integration with Plaid.

The joint solution connects Plaid's instant account verification and SVB's ACH API functionality through a tokenized system to minimize the handling of beneficiaries' sensitive bank data. Together, Plaid and SVB give clients an efficient and secure way to process payments directly from their SVB accounts. The integration also enables joint clients to be compliant with Nacha requirements related to fraud detection standards for WEB debits and data security.  

"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 & 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."

"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." 

For more information, please visit svb.com/account/fintech/plaid-integration.

About Silicon Valley Bank

For nearly 40 years, Silicon Valley Bank (SVB) has helped innovative companies and their investors move bold ideas forward, fast. SVB provides targeted financial services and expertise through its offices in innovation centers around the world. With commercial, international and private banking services, SVB helps address the unique needs of innovators. Learn more at svb.com. [SIVB-C]

Plaid Inc. is an independent third party and is not affiliated with SVB Financial Group.

©2021 SVB Financial Group. All rights reserved. SVB, SVB FINANCIAL GROUP, SILICON VALLEY BANK, MAKE NEXT HAPPEN NOW and the chevron device are trademarks of SVB Financial Group, used under license. Silicon Valley Bank is a member of the FDIC and the Federal Reserve System. Silicon Valley Bank is the California bank subsidiary of SVB Financial Group (Nasdaq: SIVB).  

 

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SOURCE Silicon Valley Bank

FAQ

What is the partnership between SIVB and Plaid about?

Silicon Valley Bank partnered with Plaid to provide clients with a secure solution for instant bank account authentication and payment processing.

How does the SVB and Plaid integration benefit clients?

The integration offers clients a streamlined way to process payments and ensures compliance with fraud detection and data security standards.

When was the SVB and Plaid partnership announced?

The partnership was announced on September 15, 2021.

What does the ACH account token integration mean for SVB clients?

It allows SVB clients to authenticate accounts and generate payments securely and efficiently, minimizing sensitive data handling.