Congratulations on reaching the final step of your account setup – connecting your bank account. This is a step where many investors may hesitate, but fear not because Arrived uses Plaid, the same technology that connects your accounts to apps like Venmo, Acorns, Chime, and SoFi.
What is Plaid?
Plaid is an application programming interface (API) that lets you connect your financial accounts to apps and services to help them provide products and services to you.
How does it work?
The process of connecting your bank account to Arrived via Plaid is straightforward. Here’s a breakdown of the 5 steps:
Step 1: Arrived Homes uses Plaid
First, we tell investors that we use Plaid to connect their accounts, with a little information on what Plaid is and how it works. However, this article serves as a more in-depth breakdown of what Plaid is.
Step 2: Select your bank
Second, you will select your financial institution by scrolling or typing in the name.
Step 3: Enter your credentials
Third, you’ll enter your login information for your financial institution. Rest assured, all of this information is kept securely with Plaid.
Step 4: Verify your identity
Fourth, you’ll verify your identity using the two-factor authentication you set up with your financial institution – this is usually a code that is sent via text, which you will enter.
Step 5: Select the account you wish to use
Fifth, you’ll select the account you want to use since many users will have multiple accounts at their banks – checking, savings, etc.
Success! You’re ready to invest
Since connecting your bank account is the final step, you are ready to return to our properties page and select your first investment.
Why can’t you connect your bank directly?
Why is Plaid involved? Because there are nearly 18,000 financial institutions in the United States that structure and manage their data in different ways. Building digital connections to each institution an app wishes to connect to takes more time and expertise than most deem feasible, so this is where Plaid comes into play. The app or service pays Plaid a fee to enable those connections – there is no charge for consumers to connect their accounts.
If for some reason you are unable to link your bank account via Plaid, send us an email to firstname.lastname@example.org and we can assist you in manually linking your account.
What does that mean for your information?
Plaid does not share the username or password for your financial accounts with Arrived or other services and apps you connect to. Once you give Plaid permission to share your data with Arrived, it securely transfers it from your financial institution to Arrived through its API.
You’re in control at all times
Plaid puts consumers in control of their information. The company states that it was “founded on the principle that consumers have a right to their financial information. Consumers decide where, how, and with whom it’s shared.”
To do this, Plaid makes it very easy to view and control what apps are connected to your financial accounts. Go to Plaid Portal and sign up or sign in to your account. From this portal, you will be able to view your connections on a single dashboard, disconnect your accounts from apps, and even delete your data from Plaid’s systems.
And Plaid is serious about security
If you have any remaining questions about the security of Plaid, check out the Plaid Security Portal. You will see the steps they take to protect your data and the organizations that review and audit its systems.
BTW, you’re probably already using Plaid
You’re probably already using Plaid; you just might not know it. Plaid estimates that 1 in 4 U.S. adults have connected a financial account to an app with Plaid, and that number grows daily. Some other apps and services that use Plaid include Venmo, Acorns, Chime, and SoFi, along with over 7,000 other digital financial services built on Plaid that connect to over 12,000 financial institutions in the United States, Canada, the U.K., and Europe.
Arrived is committed to your security
Arrived’s mission of empowering the world to build wealth through modern real estate investing can only be achieved if we build and maintain trust with our investors. One of the pillars of the trust-building process is keeping our investors’ data secure, which is why we partner with world-class organizations like Plaid.