This Week in Startups

The future of fintech with Plaid CEO Zach Perret | E1818

Sep 28, 2023

Plaid CEO Zach Perret discusses the canceled merger with Visa, Plaid's origin story, growing a community within your early customer base, Plaid's involvement with crypto companies, the importance of insurance for startups, building personal connections, increasing competition in the fintech industry, and the future of fintech and digital payment systems.

01:00:23

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Episode guests

Zach Perret

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Episode notes

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Quick takeaways

Plaid started as a consumer budgeting app but pivoted to become an API platform for fintech companies to interact with bank accounts.

Advancements in instant bank-to-bank payments, such as FedNow and RTP, aim to provide faster, safer, and more cost-effective options for financial transactions.

Building a community is crucial for starting a company, involving personal connections, genuine relationships, and a strong network around the company.

Deep dives

The evolution of Plaid and the impact of the Visa deal

Plaid, a company that builds infrastructure for fintech companies to interact with bank accounts, initially started as a consumer budgeting app in 2012. However, they pivoted to become an API platform after realizing the challenges of getting data from banks. They managed to secure several customers, including large banks like American Express. Plaid experienced market pull when they attended the TechCrunch Disrupt Hackathon and gained publicity. They then focused on building an ecosystem, partnering with both banks and fintech companies. Plaid also ventured into the crypto space by facilitating account funding and integrating crypto data into other applications.

Introduction

3min

Building Plaid, Selling to Visa, and Going Independent

8min

Vanta ad and Plaid's Court Thesis

3min

Plaid's Involvement with Crypto Companies

11min

Importance of Insurance for Startups and Support from in Broker

2min

Building a Community and Creating Personal Connections

10min

Increasing Competition in the Fintech Industry

6min

The Future of Fintech and Digital Payment Systems

16min

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Today’s show:

Plaid CEO Zach Perret joins Jason to break down the behind-the-scenes details of Plaid’s canceled merger with Visa (1:21), Plaid’s origin story (16:44), tactics on growing a community within your early customer base (27:36), and more!

FOLLOW Zach: https://twitter.com/zachperret

Time stamps:

(0:00) Jason welcomes Plaid CEO Zach Perret!

(1:21) Plaid's canceled Visa merger, coming out the other side of a canceled acquisition stronger

(11:30) Vanta - Get $1000 off your SOC 2 at https://vanta.com/twist

(12:36) Zach breaks down Plaid's product and business

(16:44) Plaid's origin story

(26:08) Embroker - Use code TWIST to get an extra 10% off insurance at https://embroker.com/twist

(27:36) Tactics for growing a community within your customer base

(35:24) Competition, specifically from financial giants

(38:58) Fount - Get $500 off an executive health coach at https://fount.bio/twist

(40:28) FedNow, CBDCs, and the next evolution of payment rails