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Plaid – Supporting Statement By [Student Name]

[Course Name] [Professor Name] [Institution Name] Date:

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Table of Content

Section 1..........................................................................................................................................3 Introduction..................................................................................................................................3 a. Company..............................................................................................................................3 b. Customers............................................................................................................................3 c. Competitors..........................................................................................................................3 d. Collaborators........................................................................................................................5 e. Climate.................................................................................................................................5 Section 2..........................................................................................................................................5 Existing Threats to Exploit Opportunities(TOWS matrix)..........................................................6 Section 3..........................................................................................................................................5 a web of culture………………………………………………………………………………………………………………………………….8

a Entry Strategies.........................................................................................................................8 Conclusion………………………………………………………………………………………...9 References........................................................................................................................................9

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Plaid-Supporting Statement Section 1 Introduction Plaid Inc. The corporation was integrated in 2013 by creators William Hockey and Zach Perret. Plaid is an economic technology company founded in San Francisco thru offices in London, Amsterdam, New York City and Salt Lake City. Currently, Plaid has a $ 2.65 Billion appraisal and over 400 employees. The company advances technology platforms, which empowers applications to link with customers' bank accounts. Plaid concentrations on enabling customers and businesses to interrelate with their bank financial records, check balances, and create payments over financial technology uses. Company “Plaid focuses on democratizing financial services through technology. We build beautiful customer experiences, developer-friendly infrastructure, and intelligent tools that enable everyone to create amazing products that solve big problems”. The first plaid was envisioned to be a particular financial management and chasing tool for customers, first known as "Silver" and then as "Rambler". When faced with problems in connecting the required bank accounts for these implements, Plaid drew the attention of its core business to an integrated banking API. Plaid has upraised an aggregate of $310 million. Company raised $60 million in badges, Succession A and Succession B assets from Google Ventures, Spark Capital, New Enterprise Associates, Goldman Sachs, Citibank and American Express. Customers High-profile plaid users include the prevalent peer-to-peer recompense app Venmo, crypto currency interchange Coin Base and Gemini, mobile investing app Robin Hood. Plaid said people with bank accounts in one in four in the United States have connected to Fintech over an app. City and American Express were early investors in venture arms, as well as Visa and rival MasterCard startups. Since its inception in 2013, Plaid has grown progressively with its customer list. The company utters it has merged with extra than 11,000 banks and linked more than 200 million customer accounts. Although it does not provide a specific number or a complete list of companies, its customer base has doubled from 2017 to 2018 and has expanded to the United Kingdom and Canada. Competitors Description Description

Plaid Designer of an application user interface design to offer monetary and banking facilities.

Scivantage Developer of an initiative platform that aims to transmute complex information and

Invest Cloud Designer of digital monetary services platform intended to provide consumers with

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HQ Location Total Raised Employees Total raised Year Founded Employees Post Valuation

San Francisco, CA $310M 400/2019 $310M 2013 400/2019 2.65B - 12/03/2018

procedures into instinctive user practices. Jersey City, NJ $49.5M 167/2019 $49.5M 2000 167/2019 N/A

information about investment options. Los Angeles, CA $133.15M 300/2019 $133.15M 2010 300/2019 $445M 12/27/2017

VRIO Framework The VRIO framework is used to analyze and evaluate an organization's consistent competitive advantage, and whether or not it succeeds in achieving it. Elements included in the VRIO framework are value, import, imitation, and organization. The VRIO framework for plaid is as follows. Value The financial resources for the Fantastic Ecosystem business model investment decisions and challenges are invaluable as they help to create external opportunities. These Fintech’s ecosystems also help business models with investment decisions and challenges in dealing with external risks. Rare According to the VRIO analysis of investment decisions and challenges of the Fantastic Ecosystem business models, financial resources are found to be extraordinary. Only a few companies in the industry have strong financial resources. Imitable Financial resources identified through VRIO analysis have to be costly. The company has acquired these resources through long-term profits over the years. Newcomers and competitors will need similar long-term profits to accumulate this amount of financial resources. Organization Distribution network through VRI analysis of investment decisions and challenges of Fantastic ecosystem business models. Challenges to reach their customers by making sure the products are available in all their stores. Therefore, these resources are a source of lasting competitive advantage for plaid ecosystem business models investment decisions and challenges. Collaborators

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“JPMorgan Chase & Co., a major financial player, has signed an agreement with Plaid Inc. The technology startup has linked consumer bank accounts to transaction requests such as Venmo and Robin Hood”. The agreement testifies that cooperation in the world of financial technology is prospective to be a crucial issue in 2019. The contract provides Plaid with easy access to financial Chase's customer database and secure access to provide new services to customers. Plaid's contract with Chase signifies another footstep in the evolution of the fintech’s delicate dance of fantasy with the world's largest financial institutions. What began as a competition is now moving toward mutual cooperation, driven by the two assets that banks value most: consumers and money[ CITATION Dor15 \l 2057 ]. Climate At Plaid, 75% of employees perceive the environment as positive and 1 employees perceive it as "extremely fast" work speed. Plaid's environment score ranks in 5th place when compared to its competitors. This puts them at 30% of similar corporations in the United States in 2033 (51-200 employees) and 35% of 734 corporations in San Francisco. When reviewing the query "Should I work in Plaid?" Ask yourself if you prefer a CEO rating. If CEO rankings are important to you, then Plaid may be a perfect fit to apply for a job, as Plaid's CEO rating is in the top 5 for companies of this size. I am at the top of the culture for Plaid with the CEO rating of Plaid. That being said, Plaid doesn't score as many goals for meetings or managers[ CITATION Nel17 \l 2057 ]. Pestle analysis Plaid pestle Analysis is a tactical tool for analyzing the organization's macro environment. PESTEL means “political, economic, social, technical, environmental and legal factors” that affect the environment of the plaid (Mohammad & Teguh, 2019). Political factor Government regulations distress the state-run of the banking division. Whenever the industry faces political influence, the government can intervene in banking matters. This includes dishonesty in political parties, or specific legislation such as labor laws, tariffs, trade restrictions, and political stability. Economic factor The economy industry and the banking are tangled. How income drifts, whether economically prosperous or barely surviving a recession, affects how many large investors can access banks. Expenditure habits, and the motives behind them, influence consumer banks to borrow or spend. Sociocultural factor Cultural impacts, such as behaviors and purchasing needs, influence how people view and use banking choices. People turn to banks for advice on business, home and education loans. Consumers learn about investments, bank accounts, credit cards, and more. Technological factor

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Technology is changing as consumers manage their funds. Many offer mobile apps for monitoring bank accounts, transferring funds and paying bills on smartphones. Even banks themselves are using technology in the workplace. Telecommunication is being embraced through virtual meetings. This changes the need for personal appointments. Legal factor The banking industry adheres to strict rules regarding consumer laws, privacy, and business structures to verify the framework in the industry. That structures are necessary for consumers in the assigned country and for worldwide consumers. Environmental Many things are taken care of through mobile apps and online banking services. Consumers can apply for a credit card online, purchase checks online, and find answers to several of their banking questions virtual or by phone. Thus, decreasing the individual traces of the environment. Changes in environmental factors can have an undeviating influence not merely on the plaid but also on other players in software and services. Macro environmental factors be able to affect the Porter Five forces that form the strategic and competitive countryside. They can affect the competitive benefit or overall level of profit of an individual firm in the software and amenities industry. Section 2 Existing Threats to Exploit Opportunities Plaid is a technology raised area that enables applications to be linked to a user's bank accounts. The founders of the company discovered that linking bank accounts to fintech was a very painful process, so they tried to create a unified banking API that would solve it for other applications as well[ CITATION Pla17 \l 2057 ]. Internal Strengths to Face External Threats Plaid is a two-way platform, which worth it succeeds when it eases transaction costs on one or both flanks of its podium. Plaid has experienced the cross-side effects of the network because once more banks are auxiliary to the platform, more applications are interested in joining the network: there are currently around 10,000 banks. Plaid appears to have resolved the chicken and egg difficult that usually starts when trying to build a two-way network. Such platforms can be very powerful because once built, they create high barriers to entry for competitors. On other side, especially since the platform is limited to banks, the corporation is occasionally at the kindness of these groups if the application miscarries as of the bank, corporation has little alternative. (Their uptime is now 95%). Although start-up rivals face barriers to entry into launching a new two-way network, banks may not be able to: a consortium of banks may provide the same service as a fictitious plaid, and potentially but with high uptime it can. So far, Plaid has survived to some extent, possibly following the success of this "dog trick". Solving Internal Weaknesses by Exploiting Opportunities

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Another danger for Plaid is that margins may shrink over interval as its fresh tech clients begin to focus on reducing costs. Competitive facilities, especially if improved funded, can easily compete through lower prices. Minimizing Threats and Handling Internal Weaknesses Confidentiality of personal information provided by online users is a major challenge. After the pledge, rules, regulations and laws related to logistics services are followed all over the world. This makes this institution respectable and very famous. Impact of Mandatory Labor Benefits Legislation There are laws regarding benefits that are supposed to be provided to the organization's labor, and they vary from country to country. These rules include working hours as well as benefits that must be provided to workers. This results in increased operation costs, and lower production capacity for plaid. The banking industry adheres to strict consumer laws, privacy and business structure rules to verify the industry framework. These structures are essential for consumers in the assigned country and consumers around the world. Impact of covid-19 and Currency Devaluation COVID-19 epidemic has led to the wickedest economic crisis as the Great Depression. In this situation, fintech’s had a unique ability to deliver access to the monetary system which would not otherwise be possible due to the somatic cessation of the bank's divisions. Though Covid-19 acted as a catalyst to enhance fintech’s adoption. Survey defendants directed that digital money organization would be their preferred technique after the epidemic. 80% of defendants say they can currently manage their money completely deprived of a bank branch. This points to the statement that, as the economy recovers momentum, every monetary services provider will rapidly develop a tech company[ CITATION Wój20 \l 2057 ]. Effects of Increased Taxation With the exception of a few tax rules that affect IP and R&D, any tax result is likely to result in a blockchain exit from the actual transaction, rather than the technology itself, and this is only the case. I will take action when more practical uses are established. Tax practitioners should therefore monitor the practical use of this technology as it develops. Impact of Violence Government regulations disturb the government management of the banking division. Whenever the industry faces political influence, the government can intervene in banking matters. This includes dishonesty in political parties, or specific legislation such as labor laws, tariffs, trade restrictions, and political stability. Section 3 Web of Culture

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Paradigm: Much of your financial life is quietly run by Plaid, a platform that provides the infrastructure to seamlessly integrate financial apps with consumer bank and credit card accounts. Stories: Consumer and business stories that work with Plaid are extremely positive as Plaid continues our previous solution. During the Plaid Pilot Program, we met or exceeded every performance standard. Power: The Company builds a data transfer network that powers fantastic and digital finance products. Plaid Products, a technology platform, enables applications to be linked to users' bank accounts. Organizations: Built technical infrastructure APIs that connect users, traditional financial institutions and developers. Control system: Different backgrounds and skills, but we all want to build a more efficient and comprehensive financial infrastructure together. Rituals: Founded in 2012, Plaid empowers Fintech to innovate by providing plumbing to facilitate the flow of financial information from banks to its customers. Entry strategy Strategic Drift The strategic drift of Plaid is as follows. Plaid's services allow users to share their financial information with thousands of apps and services such as Acorn, Betterment, Chime, Transferwise and Venmo. Plaid has emerged as a key service in the financial services sector. At the time of the visa announcement, it was reported that another four people with US bank accounts had used the plaid to contact Fintech, or include corrupt firms like Gemini, or traditional financial services firms. Phase 1: started out by building the technical infrastructure APIs that connect consumers, traditional financial institutions, and developers. Phase 2: Plaid helps developers connect to financial services in the same way that the strip helps them connect payments or travel to communication devices. By accessing a set of tools from Plaid, developers can build their applications to bank information and other financial data without having to worry about how they can connect to thousands of different banking systems. Phase 3: Plaid has raised more than 0 310 million since its inception, and the Series C investment has valued its fat at 2. 2.65 billion last year. Investing in such a strategy shows that the industry as a whole is lagging behind, and the inclusion of MasterCard and Visa gives the company additional credibility in the market (Mohammed & Teguh, 2019). Phase 4: When Plaid announced a $ 250 million Series C investment last year, it left out some key investors. It was revealed today that MasterCard and Visa quietly participated in the round. Conclusion

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Plaid, based in San Francisco, is well-positioned to monitor this practice. This is a finite glue that connects the bank accounts of the users to the app without any hindrance. Plaid concerns apps to facilitate these transactions, resulting in associates to more than 10,000 monetary institutions. Through the epidemic, Plaid has seen even more interest from incoming financial organizations. It is looking at regional banks and credit unions that want to integrate into the data ecosystem. With connectors such as Plaid Study, it wants to make it easier for its users to access the Fintech’s app economy, which helps in gig economy workforces, for trading Robin Hood, or student finances.

References Plaid Technologies, Plaid response to CFPB regarding Consumer Access to Financial Records Docket No. CFPB-2016-0048 (Feb. 21, 2017), accessible at https://www.regulations.gov/document?D=CFPB-2016-0048-0058. Plaid Technologies, Written Statement for the Symposium on Consumer Access to Financial Records (Feb. 19, 2020), available at https://files.consumerfinance.gov/f/documents/cfpb_pittsstatement_ symposiumconsumer-access-financial-records.pdf. https://www.cbinsights.com/company/plaid-technologies-competitors "Plaid: Fintech's Happy Plumbers." Forbes, Forbes Magazine, www.forbes.com/plaidfintech/#6145e4ad67f9. Data, Pitchbook: "Plaid:Pitchbook." Pitchbook_plaid.Pdf, 14 Nov. 2019. https://patentbusinesslawyer.com/fintech-case-study-plaid-visa-acquisition/ Nelson, S.B., Jarrahi, M.H. and Thomson, L., 2017. Mobility of knowledge work and affordances of digital technologies. International Journal of Information Management, 37(2), pp.54-62. Gay, R. (2018). Not that bad: Dispatches from rape culture. Atlantic Books. Cindy, S., Mohammad, B. L., & Teguh, S. I. (2019). BANKING AND FINANCIAL TECHNOLOGY (FINTECH) ISLAMIC INTEGRATION WITH COLLABORATIVE MODELS. Russian Journal of Agricultural and Socio-Economic Sciences, 91(7). Wójcik, D., & Ioannou, S. (2020). COVID‐ 19 and Finance: Market Developments So Far and Potential Impacts on the Financial Sector and Centres. Tijdschrift voor economische en sociale geografie, 111(3), 387-400....