Finicity is part of the Mastercard family. Our open banking platform provides the financial data you need.

Open Banking, Payments

Finicity Adds Speed, Security and Smart Analytics to Loan Servicing

Open banking technology is responding to the demands of an expanding market, creating new payment choices for consumers within the ACH network. Electronic payments are growing at an exponential rate, quarter by quarter. In 2020 alone, 26.8 billion payments were initiated, moving $61.9 trillion, up 10.8% from 2019. Internet-initiated consumer payments for bills, account transfers and other payments increased 15% to more than 7.7 billion. It’s clear that open banking payment apps and services are a major factor contributing to the increased ACH volume, and they are gaining mass adoption due to the added value of digital enablement.

The transition to convenient digital payments and banking services is picking up speed. Friction-hampered, outdated account validation processes are increasingly unacceptable to consumers. Remember when borrowers faxed in voided checks to set up ACH payments? While ridiculous today, clunky account validation processes persist. Loan servicers need accurate data to confirm account ownership. Finicity, a Mastercard company, and its open banking platform simplifies this and expands possibilities for both lenders and borrowers through the FinicityPay™ solution set.

Using ACH transactions, Financial Institutions can set up a new account, fund a loan, retrieve closing costs and origination fees, or set up recurring payments across mortgage, auto, small business and personal loans. 

FinicityPay serves up rich data sets in seconds, verifying account details, account owners and balances to enable accurate, confident payments. Our real-time retrieval of account financial data helps mitigate fraud risk, reduce payment failures and fees, enable onboarding and aid in maintaining compliance.  

Leveling Up With Finicity Open Banking

Finicity recently reached an integration agreement with LoanPro, a tech-forward SaaS-based solution in loan servicing software​​.

LoanPro will utilize consumer-permissioned data and smart analytics from FinicityPay solutions to verify account ownership and account credentials to fund loans, and help mitigate payment failure and fraud. LoanPro’s SaaS-based loan servicing, management, and collections platform offers a full-featured, configuration-first, API-based lending solution, designed to streamline both loan servicing and loan collections workflows. FinicityPay seamlessly adds real-time account verification capabilities to LoanPro’s digital repayment solutions.

Using Finicity’s smart data, account owner and balance check, can be verified in seconds, before initiating a payment. LoanPro can now offer improved payment success rates, reducing the risk of NSF fees. Payment fraud and failure are also minimized with FinicityPay’s secure, encrypted digital data flow. 

“Finicity’s work with LoanPro is a great example of how open banking can help providers create a seamless payments experience,” said Steve Smith, Chief Engagement Officer, Open Banking at Mastercard. “Through the integration, LoanPro’s customers will be able to validate account information in real time before pushing out funds and scheduling repayments, initiating a more strategic and accessible approach to loan servicing.”

The COVID-19 pandemic has increased the demand for digital repayment solutions, as consumers move more of their finances online. LoanPro’s Loan Management System (LMS) software integration with Finicity Pay adds speed, security, and increased payment success to the platform, an absolute necessity as the growing payments market goes digital.  

Pay Confidently

With FinicityPay, you receive fast, reliable data from the largest financial institutions, with 95% market coverage. The deep learning analytics layer in our data services mitigates fraud risk, payment failure and fees. Finicity’s solution suite is also aligned with Nacha’s WEB Debit Rule, so consumers and businesses can set up and manage their accounts with confidence.

To learn more about how open banking affects payments, download our latest eBook, Consumer-Permissioned Data Powers Payments at the Speed of Now or visit our website for more information on our FinicityPay solution set.