Backbase, a provider of AI-powered banking platforms, has teamed up with financial data network Plaid to address data fragmentation in the banking sector.

The collaboration will see Plaid’s real-time data connectivity incorporated into Backbase’s platform.

This integration is intended to help banks simplify customer onboarding, consolidate account information, and provide personalised financial services.

Backbase global vice president and ecosystem partnerships head Mayank Somaiya said: “Data is only valuable when it is actionable and understandable.

“By integrating Plaid’s aggregation and enrichment capabilities, we are enabling banks to move beyond raw transaction lists. We are providing a pre-integrated solution that gives customers a holistic, 360-degree view of their financial health -enriched with the clarity they expect -without the burden of building it from scratch.”

The joint initiative aims to eliminate issues related to legacy system integrations and improve the transparency of financial data across multiple sources.

The new solution is available worldwide through Backbase’s website, where banks can find technical assistance and implementation support.

Plaid currently connects with more than 12,000 financial institutions and 7,000 fintech companies. Backbase supports over 100 banks globally.

Plaid partnerships head Adam Yoxtheimer commented: “Artificial intelligence is rapidly changing what’s possible in financial services, but only with strong data foundations.

“By combining Plaid’s real-time connectivity and intelligence with Backbase’s Banking Platform, more banks can access the permissioned data and corresponding insights needed to deliver enhanced, personalised experiences.”

In April last year, Backbase partnered with Salt Edge to support open banking adoption.