Plaid Simplifies Plaid Link SDK - New Updates
Plaid Link SDK: A Developer-Focused Overhaul
Beginning in 2015, Plaid has empowered developers to securely access user banking data through its Plaid Link SDK. This SDK, as detailed in Plaid’s official documentation, provides a streamlined and secure method for linking bank accounts within applications.
Previously, a significant challenge existed for developers. Each application update necessitated manual implementation of changes across all platforms – including Android, iOS, and web-based systems.
Addressing Developer Friction
Recognizing the inefficiencies of this process, Plaid initiated a substantial overhaul of the SDK last year. The initial rollout, starting in February, targeted a segment of its user base.
The core objective was to enable developers to implement updates once, with those changes automatically propagating across all supported development platforms.
A Phased Rollout Strategy
Plaid adopted a deliberate, phased release approach. Despite the intended improvements, the magnitude of the changes warranted caution to prevent disruptions for developers.
This incremental rollout is a common practice within the software development community, particularly following significant architectural modifications.
Navigating Acquisition Challenges
Concurrent with the SDK overhaul, Plaid encountered unforeseen obstacles. In January 2020, an agreement for acquisition by Visa for $5.3 billion was announced.
However, the deal ultimately failed due to unresolved regulatory concerns, and was officially terminated earlier this year.
Insights from Plaid’s Engineering Lead
As Plaid aims for complete distribution of the updated Plaid Link, we interviewed Will Kiefer, Principal Engineer and Architectural Lead at Plaid.
The discussion focused on the motivations behind the SDK overhaul and the valuable lessons startups can derive from Plaid’s experience.
Key Takeaways for Startups
- Prioritize developer experience to streamline integration processes.
- Employ phased rollouts for substantial SDK updates to mitigate risk.
- Be prepared to navigate unexpected challenges, such as regulatory hurdles.
Streamlining the Development Process
According to Kiefer, the primary objective was to enhance developer interactions, facilitating easier adoption of SDK updates and simplifying application maintenance related to Plaid Link. This involved consolidating SDKs designed for individual platforms – iOS, Android, and the web – into a unified system.
This consolidation benefits not only developers but also Plaid itself, eliminating the need for parallel updates across three distinct toolsets. “Previously, we maintained three separate SDKs, each containing the logic for specific user flows,” Kiefer clarified. “Any modification, adjustment, or new feature required updates to all three SDKs, mirroring the experience of our customers.”
The company aimed to alleviate this burden for both its internal teams and its user base. The resulting effect is a reduction in user responsibility, with workflows automatically activated as needed. An iOS developer, for instance, would be guided through the appropriate workflow without needing to manually verify or update the iOS SDK.
Kiefer noted that migrating these operations to the backend is a common practice, employed by platforms like Facebook, YouTube, and Instagram. However, Plaid’s implementation introduces a unique data structure, linked to a graph database, which dynamically manages the correct workflow execution.
This shift allows Plaid to update the SDK without requiring users to download new versions for each change, significantly improving the user experience. Kiefer describes this as delivering “user flow as a service.”
“Essentially, our SDK now functions as a gateway to our user flow service,” he explained. “Customers are not compelled to update manually; they can operate on their own timelines, while we continuously refine the experience without forcing SDK updates.”
Streamlining Functionality with a New Platform
Kiefer illustrated with a scenario: consider a payment application such as Venmo. If Plaid enhances the search capabilities within its Software Development Kit (SDK), previously, developers would be required to download the updated SDK and then recompile their application to access the improved search functionality.
“Should we devise a method to refine search capabilities, the change can be deployed on our backend during account connection. Consequently, users of Venmo would experience an enhanced search function the following morning, without any intervention from either the user or the developer.” The SDK, in this context, functions as a gateway to these improved tools.
This new methodology offers advantages beyond mere practicality for both Plaid and its developer base. It also introduces a valuable data dimension, enabling Plaid to monitor user experience flows across all clients.
“We possess all the necessary data to identify customers experiencing low conversion rates, potential SDK integration issues, or areas where improvements could be implemented for specific clients, all based on this data.”
Plaid further expanded on this by incorporating alerts tailored to individual customers or the products they utilize. “These alerts allow us to analyze data related to these flows internally, proactively addressing issues or identifying errors before customers even report them.”
A key benefit of this approach, and a potential takeaway for other startups, is that the gradual rollout of this revamped platform provides a pathway for future service expansions.
“The subsequent range of products planned for launch in 2022 are fundamentally constructed upon this foundation. The platform is now established, even as we continue to reach full adoption, meaning new features developed by our teams are entirely built on this new infrastructure,” Kiefer explained.
Benefits of the New Approach
The new system allows for dynamic updates to features like search, eliminating the need for developers to constantly download and recompile SDKs.
This centralized control enables Plaid to swiftly implement improvements and deliver a better user experience without requiring any action from the end-user or developer.
Data-Driven Insights
Plaid’s access to comprehensive user flow data provides valuable insights into customer behavior and potential areas for optimization.
This data allows for proactive identification of issues, such as low conversion rates or incorrect SDK integrations.
Proactive Issue Resolution
The implementation of customer-specific alerts facilitates early detection and resolution of problems.
This proactive approach minimizes customer disruption and enhances overall satisfaction.
Future Scalability
The revamped platform serves as a foundation for the launch of new products and features in the future.
This strategic approach streamlines development and ensures consistency across the Plaid ecosystem.
Key Advantages
- Reduced Developer Friction: Eliminates the need for frequent SDK updates.
- Improved User Experience: Enables rapid deployment of enhancements.
- Data-Driven Optimization: Provides insights for continuous improvement.
- Scalable Infrastructure: Supports future product development.
