Data, Member Exclusive, Podcasts

‘A Cambrian explosion of products and services’: The rising importance of payroll data with Plaid’s Ben White

  • Data aggregation is the underpinning of the modern financial experience.
  • The industry's focus is moving to payroll data to get a fuller picture of a consumer's financial life.
close

Email a Friend

‘A Cambrian explosion of products and services’: The rising importance of payroll data with Plaid’s Ben White

The first era of next generation financial companies focused on the bank account as the store of information and value for consumers’ and business’ financial lives.

That’s changing, as fintechs and data aggregators go deeper into payroll data and payments. The topic is becoming more urgent since the PPP rollout earlier this year.

Ben White from Plaid’s policy team has recently authored a report on the value of payroll data and he joins me on the podcast to discuss what payroll data access is, why it matters, and the opportunity it presents for future fintech innovation.

SubscribeApple Podcasts I SoundCloud I Spotify I Google Podcasts
The following excerpts were edited for clarity.

Opening up payroll data

It’s interesting to think about these developments as sort of a time lag behind where the banking sector itself has moved. In 2018, 80% of payroll providers offered an online portal, which is sort of a precursor to data connectivity. The legacy method of providing consumers access to their data was giving them a downloadable PDF statement.

But the reason that 80% number is so fascinating is because 80% of banks offered online banking in 2006. So, 12 years later, the payroll industry had reached the same level of online offerings that the banking industry had reached. That’s pretty good penetration.

SPONSORED

 

Now that that infrastructure has been built, there is the opportunity for companies like Plaid to step in and say, okay, you’re providing consumers this access to their data on a one-off basis. How can we layer on top of that, using the models that we built in the banking sector, to give them the sort of data connectivity that can allow them access to the full suite of fintech products and services?


This content is available exclusively to Tearsheet Outlier members.

Tearsheet Outlier information and signup Missing out? Subscribe today and you’ll receive unlimited access to all Tearsheet content, original research, exclusive webinars and events, member-only newsletters from Tearsheet editors and reporters and much more. Join Outlier now — $59/mo Already an Outlier member? Sign in to your account

0 comments on “‘A Cambrian explosion of products and services’: The rising importance of payroll data with Plaid’s Ben White”

Podcasts

‘Early investors didn’t get going global’: Rapyd’s CEO Arik Shtilman on growing 4x in 2020

  • Revenue quadrupled in 2020 for Rapyd, an embedded payments player.
  • The company just raised $300 million to invest in growth of products and marketing in its global expansion.
Zachary Miller | January 13, 2021
New banks, Podcasts

‘With a $4 billion budget, we can do quite a bit around heritage technology’: Chase’s CIO, Rohan Amin

Zachary Miller | December 23, 2020
New banks, Podcasts

‘Freelancers need a business and personal account under one roof’: Oxygen’s Hussein Ahmed

  • With all the banking options, freelancers find themselves with products that don't fit their needs.
  • Oxygen's CEO joins us to talk about what freelancers need from their banks and how to give it to them.
Zachary Miller | December 22, 2020
Online Lenders, Podcasts

‘We see a lot of whitespace in credit cards for near prime customers’: Avant’s James Paris

  • Avant was one of the first digital lenders.
  • Almost eight years later, CEO James Paris is leading the company into new financial products.
Zachary Miller | December 21, 2020
New banks, Podcasts

Santander’s Patrick Smith on the state of SMB banking in the U.S.

  • Santander has 150,000 small business clients across its seven state footprint.
  • Head of small business banking, Patrick Smith joins us on the podcast.
Zachary Miller | December 16, 2020
More Articles