Bank to Bank transfers, linking external banks
    17 years
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One of my banks recently changed their online platform provider/software. This in and of it self nothing new, I've had many banks do this in the past.
One feature of online banking is the ability to link external accounts to transfer funds in either direction. In the past (and with all other banks I have accounts at) this is done by the bank doing the linking performing an initial transfer of 2 amounts less than a dollar (known as trial deposits). A few days later once these deposits hit the external account, you return and verify the amounts. This method has worked for years (at least 2 decades that I can think of).
The bank in question above (CIBC) has now partnered with PLAID to handle the verification. The flow has changed such that PLAID (a third party) now REQUIRES you to login to the external account, including authenticating any 2fa/sms verification in place. Effectively, this allows PLAID full access to the external account.
My understanding is PLAID is now acting as a MITM (man in the middle) entity to confirm access to the external account. With all the data breaches we hear of, who in their right mind would give such access to a third party. My relationship is with the first bank and external bank. Not to mention, PLAID had a class action suit brought against them not too long ago for sale for consumer data - https://www.courthousenews.com/judge-approves-settlement-ord... .
My existing external accounts are still shown in the profile, so I can transfer to/from those, but can't add any new ones unless I offer PLAID keys to the castle. I tried reaching out to the bank but have gotten mostly hot air. Effectively, "this is the new system, take it or leave it". Waiting on a call back from a supervisor, but am not holding my breath. Will likely file a CPFB complaint but doubt much will come of that.
Main reasons for keeping the account include a competitive savings rate for a local brick and mortar bank, high ach transfer limits and fee free in/out domestic wires.
Thoughts?
What bank?
I may be able to provide an executive level email address.
John from PA
Hopscotch
Can you transfer to a bank already approved and then transfer from that bank to the final destination?
It adds a step and will take additional time but it could be a work around.
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Duplicate
The bank in question is CIBC
The bank in question is CIBC - it's in the third paragraph
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I could use multiple banks sure, but that defeats the purpose, and their large ach limits ($130K or $150K). I suppose with that large of an amount, I would just make use of the free wire service. What ever the receiving bank charges would likely be less than any interest lost using a next day ach.
This covers outbound transfers, but not inbound.
I have other banks that also use PLAID with the trial deposit option NOT disabled.