NorthOne Integrates With Plaid for Enhanced Cash Flow Controls

Business banking app NorthOne has integrated with Plaid to provide customers with better cash flow controls.

The integration lets small businesses that use NorthOne link their financial accounts through Plaid for better transfer capabilities, according to a Wednesday (July 5) press release. This will help businesses escape overdraft fees and carry out more complex treasury functions.

“Our customers have been asking us for faster ways to move money into their NorthOne accounts,” said NorthOne Co-founder and CEO Eytan Bensoussan in the release. “By integrating with Plaid, we’ve found a partner that helps us offer them a more transparent, seamless experience.”

Many small- to medium-sized businesses (SMBs) fail due to a lack of financial systems and controls, a tide that can be turned by fostering healthier cash flow, per the release.

“NorthOne has heard from its customers that they are frustrated by hidden fees, transfer delays and disconnected services that make it difficult to accurately understand their financial situation and move money,” the release said.

The integration is happening as many SMB owners are suffering due to inefficient expense management, as Chris Trainor, head of product at Paymentus, said in an interview with PYMNTS in June.

Many of these firms are run by people who are consumers themselves, facing a level of complexity that goes beyond managing their personal budgets.

These owners don’t have “complete control over their finances and expenses,” Trainor told PYMNTS, “which leads to negative situations related to cash flow and profitability.”

He added that SMB owners typically don’t have accounting, bookkeeping and software backgrounds, and thus may not be getting the most out of their digital tools. Many still use analog tools, making and receiving payments with paper checks.

Trainor noted that automation can ease the burden of expense management for smaller owners.

Plaid’s integration with NorthOne follows the FinTech’s debut last month of a new hosted experience for its Plaid Link product, designed to make it easier for lenders to gain access to real-time cash flow data.

The on-demand experience lets lenders access consumer-permissioned cash flow data via Plaid during the underwriting process, so they can determine whether an applicant’s cash flow is sufficient to qualify them for a loan or credit product.