How does interoperability support API data connectivity?

Interoperability in API data connectivity is crucial for secure and reliable sharing of financial information among various partners, including large banks, regional banks, fintechs, and digital banking platforms. An interoperable API data standard allows data partners to build a single connection to all partner endpoints, resulting in faster implementation, fewer resources needed, and better user experience. This is particularly beneficial for smaller institutions with limited resources. Interoperability also benefits consumers by providing data transparency and control, instant access to financial tools, enhanced data security, privacy, and transparency. By delivering reliable API connectivity, data partners can build and retain customer trust, reducing customer support costs and improving the bottom line. The Financial Data Exchange (FDX) is working towards aligning the industry around a common interoperable API data standard, with Plaid contributing technical expertise to its development.