We recently announced the Plaid-Clause product integration and partnership. Together, we’re enhancing digital documents: less manual steps for completion, enriched with financial information from 3000+ trusted financial institutions. On a joint webinar last week, Plaid’s Head of Partnerships, Lowell Putnam, and Clause's Founder & CEO, Peter Hunn, discussed our work to-date and future plans.

The opportunity driving the integration is the pattern of digital-first behavior seen across financial services products and customers. Customers expect more from the tools they use. They expect easy digital experiences. This is true across demographic groups; the 50+ age group is the fastest growing segment in adopting digital products (according to PayPal).

Documents are a critical piece of closing important transactions across traditional sectors like wealth management, lending, insurance. They are a necessary part of workflows. Cumbersome onboarding flows pose drop-off risks: When an advisor manages to get new clients for new accounts, or an insurance policy is ready to be signed, steps that require users to fetch or verify supplemental data during the document completion phase can slow or kill deals. This is a significant problem given the high cost of customer acquisition within FinServ.

In many onboarding use cases, account funding is necessary to close the loop—funding a new wealth management account, or getting a new insurance policy in place. Omission of financial account data  contributes to customer abandonment and transaction failure rates.

A customer-first approach is critical in onboarding. At the same time, major financial services transactions have well-established legal and contractual requirements for onboarding processes. Plaid and Clause can add integrity to and remove friction from these processes without undermining these requirements.

CIOs and leaders at banks and insurance firms need more than ever to understand how to get more out of the tools they use today. Our integration with Plaid is focused on this. Smart agreements integrated with Plaid add significant value to e-signature tools alone. You can move from a basic version of digital signature to a signing experience that imports data accuracy and faster turnarounds.  Importantly, integration time and effort is minimal. There is no need to change your existing technology stack. No need to change workflows.

The Clause-Plaid integration represents a technology milestone: bringing fintech into agreements. The onboarding use case is a first, and important, step. And using Clause and Plaid not only meets customers where their expectations are, it can get ahead of compliance requirements. NACHA, which administers the ACH payment system, is introducing new anti-fraud measures related to account validation, effective Spring 2021. Additional verification is required for organizations that debit funds via ACH for digital transactions. Plaid is an approved method for NACHA-compliance verification. Customers manually entering ACH details will not be enough for NACHA compliance.

A video recording of the session is available below.

To learn more and try the integration for yourself, get in touch with us here.