Florida-based Loquat, which operates a proprietary business cloud banking platform for financial institutions, businesses and consumers, has partnered with data network Plaid to introduce Open Banking to credit union and community bank customers.
Through the partnership, which sees Loquat integrate Plaid’s advanced connectivity infrastructure into its digital banking platform, consumers and small businesses will be able to connect their financial accounts across platforms, resulting in more “streamlined digital experiences”.
The integration enables financial institutions to offer customers secure account linking, access to real-time, consumer-permissioned financial data, and improved financial management.
By also facilitating fund transfers for new account openings, the partnership aims to reduce attrition caused by funding delays or failures.
Zarina Tsomaeva, founder and chief executive officer of Locquat, said it is “dedicated to creating frictionless banking experiences” for clients.
“Our partnership with Plaid allows us to deliver intuitive solutions that connect the dots between financial platforms, providing users with the tools they need to manage their finances with confidence and ease,” she added.
Loquat’s end-to-end platform allows credit unions and community banks to improve or launch digital banking functionality designed to serve consumers as well as SMBs.
At the end of last year, Plaid revealed the US financial institutions most prepared for Open Banking.
Plaid’s research showed that executives at regional and smaller financial institutions – typically those with between $500 million to $10 billion in assets under management – are less confident in their readiness.
