The Mastercard Open Banking Platform
Open Banking for Business
Let's go
Certain services are provided by Finicity, a Mastercard company
Intro
Challenges
How it Works
Solutions
Benefits
Lending and credit decisioning More profitable, scalable decisioning with lower risk
OPEN BANKING FOR BUSINESS
Mastercard’s open banking solutions help financial services providers deliver new and improved experiences to their small to mid-sized business (SMB) customers. With a rich set of data and insights, services providers can reimagine SMB services:
Registration
DEMO
Adding Billers
One-Time Payment
Auto Pay On
Recurring Payments
Conclusion
The challenges
Business financial management Real-time account data for accounting, expense management
Account opening and funding Fast, seamless and risk-mitigated
B2B ACH payments Validated account details for increased payment success
Over 80% say they want a partner to help them find access to capital**
80
%
63% of SMB owners are stressed due to cash flow concerns*
87% already use or would like to use open banking-powered apps and services to secure funding**
* Kabbage, 2019 ** Mastercard Open Banking Small Business Report (2022)
CHALLENGES FOR SMBs
Frank is the owner and operator of Frank’s Supply Shop. Like other small businesses, Frank's Supply needs to effectively manage its cash flow to make sure it has the capital it needs to run, manage and grow its business.
Next
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85% are looking for customized financial recommendations**
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MASTERCARD OPEN BANKING
Frank is looking for the best resources to manage the shop’s finances and access capital, so he partners with BizGro, an SMB service provider.
See how it works
Frank is looking for the best resources to manage the shop’s finances and access capital, so he partners with BizGro, an SMB service provider. Mastercard's open banking platform helps BizGro seamlessly and securely access Frank’s permissioned business account data.
EMPOWERING EXPERIENCES
Using BizGro’s online services, Frank is invited to permission use of his account data to help BizGro seamlessly manage the finances of Frank’s Supply Shop.
Bizgro enables this seamless user experience for its customers by integrating Mastercard’s Connect data permissioning widget into its services, while integrating with our best-practice API developer portal.
Proofpoint
By selecting “Next,” Frank is notified that he is permissioning the use of his business account data for BizGro.
Mastercard is in the top 1% of trustworthy brands.*
*Brand Asset Valuator BAV 2022
Frank begins the process by searching for Partnerbank, his business bank. It’s conveniently shown on a tile, and he 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, easy permissioning experience for your customers.
SECURE, QUALITY CONNECTIONS
Frank 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 Frank’s phone number in addition to his 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
Frank enters the code he received on his phone.
ACCOUNT LINKING
Frank selects the account(s) that are used for his regular business transactions. If he wants to add more than one account from different banks, he’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.
Frank reviews his selections, consents to the terms, and chooses to connect his account information.
Mastercard open banking data is used in high-dollar credit decisioning with stringent quality and completeness requirements by large banks, investors, others.
Now, BizGro has a reliable view into Frank’s bank transactions, cash flow and balances to help him manage his business finances.
Mastercard’s open banking platform empowers consumers and small businesses with data control, access, transparency and security.
Using insights gained from his financial data during an account review, BizGro and Frank decide it is optimal timing for Frank’s Supply Shop to apply for additional working capital to grow the business.
81% of owners say, “I need a loan that is tailored to my business’ specific needs”*
85% of small businesses are looking for faster and easier access to capital*
Meet Adam
Demo
Low Confidence
81
* Mastercard, 2022
BizGro already has access to Frank’s business accounts. Frank receives a message asking him to initiate the business credit card application. By clicking “Use My Account Data,” he is acknowledging his data will be analyzed and used in a credit decisioning process.
In minutes, Mastercard’s open banking platform can verify his business’s identity, deliver analytics, scoring and insights, and even augment bureau data for smarter credit decisioning:
Business identity verification Mitigate risk of fraud
Cash flow analytics Inflows and outflows up to 24 months
Balance analytics Historical balances up to 24 months including analysis of loan stacking
Payment risk analytics & scoring Identifying historical missed payments to determine the likelihood of a missed payment event in the future
Frank’s Supply Shop was approved for the business credit card extension and Frank is now able to leverage it to grow his business. But the benefits of Mastercard open banking don't stop there. BizGro also utilizes the open banking platform to:
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Verify his business accounts and account ownership for onboarding and funding
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Set up loan payments through ACH
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Monitor the borrower’s personal finances in real time to manage risk
SMB service providers win when they leverage Mastercard’s open banking platform:
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Deliver better customer experiences
Streamlined underwriting, onboarding and payments process
Smarter decisioning, credit loss reduction
Better management of SMB customer finances
SMBs like Frank’s Supply Shop win, too:
Empowered with the control, access, security and transparency of their own account data
Fast, simple customer experiences that help them stay focused on building their business
Increased ability to access capital
Real-time financial management insights
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