Bank data sharing startup Plaid moves into wealth management through Quovo acquisition

Bank data sharing startup Plaid moves into wealth management through Quovo acquisition

Plaid, a US startup that links consumer bank accounts with fintech apps like Venmo and Coinbase, is widening its reach through the $200 million acquisition of Quovo, which delivers a similar service but with a focus on wealth management and brokerage data.

As consumers increasingly look to share their bank data with third party apps, Plaid has grown into a multi-billion dollar company in just a few years. In December, amid rumours of a bidding war, it closed a $250 million Series C round at a $2.65 billion valuation.

The startup has focussed on helping financial applications interact with checking and savings accounts, striking deals with big banks such as JPMorgan Chase and fintechs including Robinhood and Acorns.

The company claims that a quarter of US consumers with bank accounts have connected to Plaid through an app.

Now it is moving into investment and brokerage data, agreeing to buy Quovo, which offers a similar service but for firms such as Betterment, Wealthfront, SoFi, Vanguard, and John Hancock.

Terms of the deal have not been disclosed but Plaid could pay $200 million after performance bonuses, according to Bloomberg.

Say Plaid cofounders Zach Perret and William Hockey: "As we enter 2019, we want to fully enable a digitally-delivered financial system—one that gives consumers convenience and control across their financial assets."
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