The San Francisco-based firm said it does not mislead consumers about its role in transactions; TD Bank’s U.S. division alleged Plaid mimics its login functionality to give users the “false impression” that they’re entering credentials into their financial institutions’ own digital properties. Plaid said it has been “working with TD for quite some time,” and denied selling or renting consumers’ personal information. (The Canadian Press)
Talking point: The fintech firm is the target of a proposed California class-action lawsuit alleging its collection of user-provided backing credentials inputted in apps that use its technology is deceptive. A May 2018 blog post states that Plaid has “added coverage” for RBC, Scotiabank, TD Canada Trust, BMO and CIBC, but that doesn’t mean they’re using the company’s APIs, as some U.S. banks do. At least one has backed a competitor. In September 2019, RBC invested in an US$18-million round for Fidel, which focuses on payment data from card networks.