The Mastercard Open Banking PlatforM
Lending
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Certain services are provided by Finicity, a Mastercard company
Intro
Challenges
How it Works
Solutions
Benefits
Digitize and automate the payments onboarding experience as consumer expectations grow
Consumer-permissioned data to maximize payment success and evaluate settlement risk
60% of consumers have already or would like to link accounts to simplify the loan process.
Mastercard’s open banking consumer lending solutions are transforming the experience for lenders and their customers. With a rich set of real-time data, analytics, scores and insights, lenders can make smarter decisions and increase inclusion for consumers.
Open Banking Platform
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Meet Adam
Demo
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Conclusion
Personal
Mortgage
Cards
Auto
Buy now pay later (BNPL)
Thin-file
Tenant screening
Lenders and consumers alike are adapting to a faster, more intelligent, digital-first environment.
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60% of consumers have already or would like to link accounts to simplify the loan process.**
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Digital lenders process loans 20% faster than other lenders.*
* New York Federal Reserve Bank ** Mastercard, Rise of Open Banking, 2022 *** Mastercard, The Emerging Credit Crisis, 2020
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86% of consumers want more control over the financial data being used to determine their creditworthiness.***
EMPOWERING EXPERIENCES
Chloe is applying for a personal loan from Acme Lending. Mastercard open banking helps her simply and securely connect the lender with her financial data for a smart, fast decisioning experience.
See how it works
To get started, Adam clicks “add money”
In Acme’s online credit application, Chloe is invited to permission the use of her relevant financial accounts in the credit decisioning process.
Acme Lending enables this seamless user experience for its customers by integrating Mastercard’s Connect data-permissioning widget into its services, while integrating with our API developer portal.
Proofpoint
Chloe agrees to securely share her bank account details with the Acme Lending app.
Chloe begins by searching for Partnerbank, her personal bank. It is conveniently shown on a tile, and she selects it.
The user interface of the Connect widget can be customized to align more closely with your brand so you can deliver a comfortable and easy permissioning experience for your customers.
SECURE, QUALITY CONNECTIONS
Chloe logs in, and a secure connection to Partnerbank is established.
Connect supports two-factor authentication (2FA), a more secure method of connecting accounts, by sending a code to be sent to Chloe’s phone number in addition to her login information.
Mastercard continues to lead the market with direct API connectivity. Our tokens provide access to the highest-quality data, enhance security, and enable more persistent data access for longer periods of time. Through both direct and legacy connections, we maintain extensive account coverage to enable more of your customers. > 95% of consumer accounts > 90% of business accounts
ACCOUNT LINKING
Using her login information, a secure connection to Partnerbank is established.
Chloe selects the account(s) that are used for her regular transactions. If she wants to add more than one account from different banks, she’ll be returned to the bank selection screen after adding the first account.
Mastercard open banking data integrity services perform tens of millions of data attribute quality checks per month.
Chloe reviews her selections, consents to the terms and chooses to connect her account information.
Mastercard open banking data is used in high-dollar credit decisioning with stringent quality and completeness requirements by GSEs, large banks, others.
In this case, Chloe’s lender asks her to also verify her employment. She verifies the last four digits of her social security number. We use our connections with payroll providers to search for employment records.
Mastercard open banking enables consumers to leverage data from their personal assets and liabilities, accounts, payroll and paystubs to support a variety of lender use cases.
It returns employment records found for Chloe. If no payroll records were found, the lender would have the option of asking the borrower to upload a paystub by PDF file or camera snapshot. She selects which employer info she wants to submit.
And that's it. Chloe has provided all the necessary data for the lender to leverage key insights or to verify assets, income and employment for her loan.
Mastercard’s open banking platform empowers consumers and small businesses with data control, access, transparency and security.
MASTERCARD OPEN BANKING
In minutes, Mastercard’s open banking API endpoints can deliver data, analytics and scoring attributes for an accurate, up-to-date and comprehensive view of the consumer’s financial position. Lenders can augment bureau data for smarter credit decisioning. Better data enables better decisioning, more competitive terms, and less time to closing. Everyone wins.
Cash flow Up to 24 months of rich cash flow attributes for more accurate insights into a borrower’s finances
Assets Up to 12 months of transaction data to verify stated, current and historical assets
Income Up to 24 months of transactions, payroll and paystub data to verify income
Employment Up to 36 months of payroll and paystub data to verify employment
Transactions Up to 24 months of cleaned, categorized transaction data delivered with FCRA requirements
Statements Up to 24 months of statements delivered with FCRA requirements
Chloe was approved for the personal loan. But the benefits of Mastercard open banking don't stop there. Lenders can utilize the Mastercard open banking platform to:
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Reduce Returns
Monitor the borrower’s personal finances in real time to manage risk
Set up loan payments through ACH
Verify account details and ownership for onboarding and funding
Registration
DEMO
Adding Billers
One-Time Payment
Auto Pay On
Recurring Payments
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Innovative Experience
Seamless Verifications
Reduced Fraud
Reduced Returns
Benefit to Consumers →
Lenders win when they leverage Mastercard’s open banking platform:
Enable better customer experiences
Mitigate and better price risk
Streamline processes
Provide smarter decisioning
Mastercard open banking enables lenders to build empowering experiences that keep their customers coming back again and again.
Increased inclusion
Simple, intuitive experiences
Empowered with data control, access and security
CONSUMERS WIN TOO
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Finicity, a Mastercard company is a Consumer Reporting Agency (CRA) data aggregator in open banking.
