This Week in Startups

The future of fintech with Plaid CEO Zach Perret | E1818

Sep 28, 2023

Zach Perret, CEO and co-founder of Plaid, shares insights into the fintech world and the company's journey. He discusses the intriguing story behind Plaid's canceled merger with Visa and how it led to a stronger, independent future. Zach also dives into Plaid's origins and the importance of building a community among early customers. The conversation explores the evolving role of fintech in supporting crypto transactions and enhancing consumer banking applications, revealing exciting trends in payment modernization and collaboration within the sector.

01:00:23

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Episode guests

Zach Perret

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Quick takeaways

Plaid's canceled merger with Visa strengthened the company, leading to its transformative and independent path.

The future of payment systems is focused on faster, more efficient, and secure transactions, potentially reducing fees.

Building a community and fostering close customer relationships is crucial for driving growth and receiving valuable feedback on products.

Deep dives

The Evolution of Plaid and the Importance of Financial Ecosystems

Plaid, a B2B company focusing on helping consumers live better financial lives, has become an integral part of the financial technology ecosystem. By providing the infrastructure that enables FinTech companies to interact with bank accounts, Plaid has connected with over 12,000 financial institutions. Their customers range from large banks to FinTech startups, creating a multi-sided ecosystem that promotes innovation and increases options for consumers. Plaid is also involved in identity verification and risk and fraud analytics, ensuring security and privacy within the ecosystem. The development of instant bank-to-bank payment systems like UPI in India and FedNow in the US is paving the way for faster and more seamless transactions. These systems offer advantages such as speed, safety of funds, and potentially lower fees, ushering in a new era of innovation and convenience in the banking industry.

The Power of Scale and Product Market Fit in the Fintech Ecosystem

03:38

The Rise of FinTech as a tailwind

01:07

The Importance of Infrastructure in Connecting Consumer Fintech Products with Bank Accounts

01:22

Intro

3min

The Acquisition That Could Have Been

7min

Navigating Tech Acquisitions and the Role of Compliance

5min

Navigating Fintech and Crypto: A Journey of Innovation

11min

Building Community and Navigating Early Stage Challenges

3min

Building Connections in Fintech

9min

Innovations in Fintech and Personal Health Management

3min

Modernizing Payment Systems

19min

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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