One-touch, GSE-accepted verification of assets, income and employment reduces loan process by up to 12 days

SALT LAKE CITY, Utah – February 25, 2021 – Finicity, a Mastercard company and leading provider of open banking solutions, today announced its one-touch Mortgage Verification Service (MVS), enabling lenders to provide the simple, easy experience that today’s consumers and lenders are looking for in mortgage origination. The solution allows consumers to permission data, quickly and easily, so lenders can verify assets, income and employment in a single interaction with borrowers that takes seconds or minutes instead of days or weeks. The verification is accepted by both Freddie Mac and Fannie Mae in place of cumbersome manual loan documentation.

While mortgage lending has rapidly moved toward a digital experience, the verification process has largely remained a manual, paper-driven process. By reducing the burden of manual methods of documentation, Finicity may help shave 8-12 days off the origination process for rapid loan closing while also increasing accuracy, improving profitability, and creating a better experience for both lenders and borrowers.

Through Finicity Lend’s Mortgage Verification Service, Finicity’s open banking platform leverages high value data available from financial institutions and payroll processors to provide accurate, real-time insights into a borrower’s current assets, income and employment. The solution offers flexible flows for different mortgage lending use cases — from refinancing to new purchases, qualified to non qualified mortgages.

This innovative service creates a simple, fast, FCRA-compliant verification experience that empowers consumers to digitally permission use of their financial data with one touch, through Finicity Connect, to rapidly validate key financial suitability requirements of a mortgage application. This is perfectly aligned with Finicity’s mission to empower both lenders and consumers while helping consumers benefit more from their own financial data. 

“We are streamlining mortgage lending significantly, reducing costs and shortening the time needed for the overall loan origination process,” said Finicity CEO and Co-founder Steve Smith. “With Finicity Lend, our ultimate goals are to help mitigate risk for lenders, create an improved consumer experience, and ultimately increase overall financial inclusion by helping borrowers better prove their creditworthiness.”

GSE Accepted

The Finicity Lend Mortgage Verification Service is accepted by both GSEs as a valid demonstration of a borrower’s assets, income and employment. Lenders are able to use Finicity verification reports for automated assessment and receive representation and warranty relief using Freddie Mac Loan Product Advisor® asset and income modeler (AIM).  Fannie Mae accepts Finicity mortgage verification reports for automated assessment within Desktop Underwriter® validation service through Day 1 Certainty®. 

“Freddie Mac has been at the forefront of advancing the digital mortgage experience that today’s borrowers have come to expect,” said Rick Lang, Single-Family Vice President of Strategy and Integration at Freddie Mac. “Our data-driven strategy helps produce safer loans and reduces the paper chase so our clients can speed up underwriting and bring borrowers to the closing table sooner.”  

“At Fannie Mae, we’ve been pioneering the digital technologies that will make the borrowing experience faster and easier for borrowers,” said Chuck Walker, Vice President Digital Alliances and Distribution at Fannie Mae. “Manually providing verification documents is a time-consuming and stressful process, so addressing asset, income and employment verification is central to moving the industry toward the ideal digital mortgage.”

What the Industry is Saying

Finicity clients and partners are already weighing in on Finicity’s Mortgage Verification Services (MVS):

“At Sierra Pacific Mortgage, we were excited to be a participant in the rollout of this enhancement to the lending process”, said Gary D. Clark, Chief Operating Officer at Sierra Pacific Mortgage.  “Continued improvements to the lending process is an important initiative at Sierra Pacific Mortgage, and one that elevates the consumer experience is a win-win for everyone.”

“As we began utilizing this new service, it quickly became clear how much it would improve the lending process for both our loan officers and borrowers”, said Patrick Gardner, Principal of Vellum Mortgage.  “Digitizing the mortgage process not only creates a faster, smoother experience for the borrower, but we’re also seeing significant cost savings and an increased volume of loans that we’re able to close.”

“For consumers, our focus is on delivering a fully mobile, fully seamless homeownership journey that’s centralized in one connected platform.  For lenders, SimpleNexus promises flexible efficiency that doesn’t get in the way of doing business.  Our integration with Finicity Lend’s Mortgage Verification Service delivers on both fronts with GSE-accepted verification of assets, income and employment in one easy interaction,” said SimpleNexus Chief Product Officer Shane Westra.

See MVS in Action

Finicity Lend’s Mortgage Verification Service  will be available across multiple LOS/POS platforms. See our MVS solution live at the following events: 

To learn more about Finicity and its commitment to fast, reliable and high-quality data, visit www.finicity.com

About Finicity

Finicity, a Mastercard company helps individuals, families, and organizations make smarter financial decisions through safe and secure access to fast, high-quality data. The company provides a proven and trusted open banking platform that puts consumers in control of their financial data, transforming the way we experience money for everything from budgeting and payments to investing and lending. Finicity partners with influential financial institutions and disruptive fintech providers alike to give consumers a leg up in a complicated financial world, helping to improve financial literacy, expanding financial inclusion, and ultimately leading to better financial outcomes. Finicity is headquartered in Salt Lake City, Utah. To learn more or test drive its API, visit www.finicity.com

Finicity releases detailed analysis affirming that data aggregators should be deemed CRAs and subject to FCRA requirements

SALT LAKE CITY, Utah – February 11, 2021 – Finicity, a Mastercard company and leading provider of open banking solutions, has produced a detailed whitepaper with analysis showing why the Fair Credit Reporting Act (FCRA) should apply to providers of data aggregation services (“data agents”) in certain circumstances. 

The FCRA protects consumers by establishing and protecting the right for individuals to dispute inaccurate data in consumer reports and get those errors fixed. The growth of consumer-permissioned data sharing in lending, insurance, and employment means that FCRA compliance will become a critical component of consumer protection. 

“As Open Banking puts consumers in control of their financial data and gives lenders a more complete view of consumers’ creditworthiness, it’s critical that the sharing of financial data is conducted fairly, accurately, and with the utmost transparency,” said Steve Smith, Co-founder and CEO of Finicity. “Leveraging the protections of the FCRA will provide a vital regulatory framework that gives everyone in the financial ecosystem confidence in all of these areas, as well as manageable, familiar compliance standards for the data agents behind growing aggregation capabilities for underwriting use cases.”

Lenders have increasingly relied on new forms of financial data, such as information about a consumer’s bank account transactions, which can enable better, more effective credit-decisioning for lenders. This data supplements the traditional credit score to expand the lenders’ view of a borrower’s financial health, and ultimately stands to increase financial inclusion. Not only does this financial data give lenders a more thorough credit review process, it also empowers consumers with control over their own financial data, which they can grant or revoke access to. 

“With the emergence of third-party data aggregators and their ability to provide financial data for the purposes of credit decisioning, FCRA compliance is essential to protecting the consumer,” said Chi Chi Wu, Staff Attorney with the National Consumer Law Center.

Finicity believes this new credit process also necessitates that it function in concert with fair reporting principles: data should be accurate, consumers should have access to their own data, and they should know when and how their data is used. 

In December 2019, the Consumer Financial Protection Bureau (CFPB) and the federal banking agencies released an Interagency Statement on the Use of Alternative Data in Credit Underwriting. In the Interagency Statement, the agencies recognized the consumer benefits of considering cash flow data in credit decisions and noted how consumers “can expressly permission access to their cash flow data”—through data agents—to enhance transparency and consumer control. 

The CFPB is expected to propose new rules around consumer-authorized access to financial data in early 2021. 

Finicity is releasing a detailed white paper “FCRA and Data Agents” with analysis of the mechanics and benefits of FCRA compliance for data aggregators. The full white paper can be downloaded at:  https://info.finicity.com/fcra-data-agents/

To learn more about Finicity, its data services, and its commitment to fast, reliable and high-quality data, visit www.finicity.com

About Finicity

Finicity, a Mastercard company, helps individuals, families, and organizations make smarter financial decisions through safe and secure access to fast, high-quality data. The company provides a proven and trusted open banking platform that puts consumers in control of their financial data, transforming the way we experience money for everything from budgeting and payments to investing and lending. Finicity partners with influential financial institutions and disruptive fintech providers alike to give consumers a leg up in a complicated financial world, helping to improve financial literacy, expanding financial inclusion, and ultimately leading to better financial outcomes. Finicity is headquartered in Salt Lake City, Utah. To learn more or test drive its API, visit www.finicity.com.

Finicity Pay creates secure payments ecosystem; meets 2021 Nacha requirements for ACH transactions, increased anti-fraud controls

SALT LAKE CITY, Utah – January 15, 2021 – Finicity, a Mastercard company and leading provider of open banking solutions, and SWBC, an international financial services company, announced today that SWBC will utilize Finicity Pay™ for instant account verification of online Automated Clearing House (ACH) payments to satisfy the National Automated Clearing House Association’s (Nacha) 2021 requirements for ACH transactions, which allows for stronger anti-fraud controls. 

Finicity Pay, an integrated solution set of Finicity’s open banking platform, will help SWBC create a more secure ACH ecosystem through instant account verification, which verifies account status and details needed for an ACH transfer and supports the immediate execution of ACH transactions. The solution replaces older methods of verification such as micro-deposits and pre-notification. SWBC will utilize Finicity Connect, a simple, consumer-centric open banking experience, to enable their consumers to digitally authenticate and permission their bank account information to securely expedite an ACH bank payment.

“The Nacha 2021 rule is intended to provide stronger anti-fraud controls leading to a more secure payment experience,” said Finicity CEO and Co-founder Steve Smith. “Instant data verification is the best way to enable consumers to pay, get paid, or set up accounts. Our team is continually expanding our capabilities in money movement through our trusted open banking platform.”

SWBC provides financial institutions, businesses, and individuals a wide range of services, including insurance, mortgages, wealth management, employee benefits and more. Among its services, the company offers an enterprise payment solution platform for receiving payments—both ACH and card-based payments via call-center, website, interactive voice response (IVR), mobile, or cash.

“Providing secure and efficient access to the initiation of ACH payments is essential for today’s consumer,” said SWBC Vice President of Product Strategy Tucker Stovall. “Our partnership with Finicity will allow SWBC to deliver new security capabilities protecting consumers and the institutions that serve them. In addition, instant verification allows for speedy enrollment and immediate access to ACH transaction initiation, a significant improvement to the user experience.”

Nacha manages the development, administration and governance of the ACH Network, the backbone for the electronic movement of money and data in the United States. Finicity and SWBC are Nacha Preferred Partners, recognized for offering products and services that align with Nacha’s core strategies to advance the ACH Network.

Beginning in March 2021, Nacha will implement a new rule—referred to as the WEB Debit Rule—requiring businesses that debit funds via ACH for online orders to implement enhanced fraud protection through account verification.

Specifically, Nacha will require businesses to include, at minimum, account validation on first-use as part of a commercially reasonable fraudulent transaction detection system. Out of the core accepted types of verifications—manual, microdeposits, prenotes, database verification, and instant account verification—Finicity offers consumer-permissioned instant account verification that will be utilized by SWBC. 

To learn more about Finicity, its data services, and its commitment to fast, reliable and high-quality data, visit www.finicity.com

About Finicity

Finicity, a Mastercard company, helps individuals, families, and organizations make smarter financial decisions through safe and secure access to fast, high-quality data. The company provides a proven and trusted open banking platform that puts consumers in control of their financial data, transforming the way we experience money for everything from budgeting and payments to investing and lending. Finicity partners with influential financial institutions and disruptive fintech providers alike to give consumers a leg up in a complicated financial world, helping to improve financial literacy, expanding financial inclusion, and ultimately leading to better financial outcomes. Finicity is headquartered in Salt Lake City, Utah. To learn more or test drive its API, visit www.finicity.com

About SWBC

As a diversified financial services company, SWBC provides financial institutions, businesses, and individuals a wide range of services, including insurance, mortgages, wealth management, employee benefits, and more. Headquartered in San Antonio, Texas, SWBC has partners and divisions across all 50 states and manages business around the world. No matter how wide its reach, SWBC always listens to its customers’ needs, analyzes their current situations, and recommends customized solutions. For more information about our innovative approach to personalized service, visit SWBC’s website at swbc.com.

Agreement Demonstrates BMO’s Focus on Customer-Centric Digital Advancement and Open Banking

CHICAGO & SALT LAKE CITY, Utah – November 12, 2020 – Finicity, a leading provider of open banking solutions, announced today with BMO Harris Bank that they have signed a data access agreement. The agreement signals a commitment to empower consumers with more control and secure sharing of their financial data.

The agreement enables BMO’s customers to have more secure and convenient access to their financial data, empowering them to manage their finances, access capital, and make financial progress. The data access agreement defines common rules for how Finicity and BMO will communicate and exchange financial data.

Finicity embraces five core consumer-permissioned data sharing principles: access, control, transparency, traceability, and security. As consumer-permissioned data sharing continues to grow, these principles can empower consumers with control and awareness of which parties have access to their financial data, what aspects of financial data they want to share, and how to modify the access. Customers retain ownership of their data and have the ability to consent to which data will be shared.

BMO customers will also be able to take advantage of Finicity’s open banking platform to permission access to their financial data for their own benefit across a variety of apps and services.  For example, Experian Boosttm enables customers to permission financial data that is added to their credit file, which engages consumers more directly within the credit scoring process.

“It’s important for our customers to be in control of their financial lives,” said Hugh McKee, head of BMO Partners. “This partnership with Finicity not only empowers our customers with more control over their financial data, it also creates an environment for them to meet their goals built on transparency and security.”

“Finicity continues to be at the forefront of partnerships with financial institutions to provide the most robust and secure data sharing environment through our open banking platform,” said Finicity CEO and Cofounder Steve Smith. “Working with forward-thinking organizations like BMO Harris will have a real impact on driving better financial outcomes for consumers, including financial literacy and financial inclusion.”

Finicity continues to take a market leadership role by signing a data access agreement with BMO Harris, marking its eighteenth agreement. Finicity’s signed direct access agreements represent more than 50% coverage access of all direct deposit accounts in the US through direct API connections.

Visit www.bmoharris.com to learn more about their innovative approach towards digital banking. To learn more about Finicity open banking platform and its commitment to fast, reliable and high-quality data, visit www.finicity.com.

About BMO Harris Bank

BMO Harris Bank provides a broad range of personal banking products and solutions through more than 500 branches and fee-free access to over 40,000 ATMs across the United States. BMO Harris Bank’s commercial banking team provides a combination of sector expertise, local knowledge and mid-market focus throughout the United States. For more information about BMO Harris Bank, visit the company fact sheet. Accounts are subject to approval. BMO Harris Bank N.A. Member FDIC. BMO Harris Bank is part of BMO Financial Group, a highly diversified financial services provider with total assets of CDN$974 billion as of July 31, 2020.

About Finicity

Finicity’s mission is to help individuals, families, and organizations make smarter financial decisions through safe and secure access to fast, high-quality data. The company provides a proven and trusted open banking platform that puts consumers in control of their financial data, transforming the way we experience money for everything from budgeting and payments to investing and lending. Finicity partners with influential financial institutions and disruptive fintech providers alike to give consumers a leg up in a complicated financial world, helping to improve financial literacy, expanding financial inclusion, and ultimately leading to better financial outcomes. Finicity is headquartered in Salt Lake City, Utah. To learn more or test drive its API, visit www.finicity.com.

Recognition underlines Finicity’s efforts to improve financial inclusion and deliver new technologies and solutions to change the credit-decisioning experience

SALT LAKE CITY, Utah – Oct. 20, 2020 – Finicity, a leading provider of open banking solutions, was recognized by the Mortgage Bankers Association (MBA) as a winner of its fifth-annual Residential Diversity and Inclusion Leadership Award under the category of Market Outreach Strategies. MBA presented the award to Finicity during a general session of its 2020 Virtual Annual Convention and Expo on Oct. 19.

As part of MBA’s strategy and promotion of diversity and inclusion, the award recognizes member company initiatives that are specifically designed to increase outreach, marketing or products to attract customers from the industry’s fastest-growing market segments. The award commends the hard work, dedication and creativity of exemplary programs that focus on achieving organizational diversity and inclusion. 

“We’re honored to have been recognized by MBA for our concerted efforts around diversity and inclusion,” said Steve Smith, Finicity CEO and Co-founder. “We feel there’s an increasing need to re-evaluate the current credit review process in a way that helps consumers from all backgrounds become more empowered to take control of their own financial data and make better financial decisions. We believe our secure open banking platform can truly help consumers benefit from their data, prove their creditworthiness for loans, and include more people in the traditional financial system.”

In its evaluation, MBA notes: “Finicity stood out for its unique platform to provide a more robust picture of credit worthiness for borrowers. We were particularly impressed by your efforts in improving access to homeownership.”

Finicity’s open banking platform is the engine that drives improvement in the lending process and has introduced several new products and partnerships to further the inclusion of more people in the traditional financial system. Leveraging the Finicity open banking platform’s robust data intelligence layer, Finicity Lend provides a new alternative data service, Cash Flow, that analyzes financial account data delivering a broad set of cash flow attributes. This gives lenders more accurate insights into a small business or individual’s creditworthiness. 

The Cash Flow analytics service digitizes and automates the capture and delivery of data that previously required significant combinations of manual and automated processes to extract and analyze. The use of this alternative data is supported by the Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau, Federal Deposit Insurance Corporation, National Credit Union Administration, and Office of the Comptroller of the Currency as referenced in their Interagency Statement.

In addition, Finicity’s open banking platform provides the technology that empowers consumers to control and share their data to improve their financial lives. And now they can share their utility and phone payment data in order to improve their credit score.  

Building on its leadership position with financial institution coverage, Finicity has added payroll data as a source from a leading payroll provider to further enhances Finicity’s open banking platform’s ability to verify consumer-permissioned income and employment details — critical to many lending use cases — with real-time, direct from the source data. These connections empower the consumer through better financial outcomes while at the same time reducing risk and providing better data for lenders to make better decisions.  

Expanding the types of data used to determine creditworthiness addresses longtime consumer concerns that have resurfaced recently due to the COVID-19 pandemic and resulting economic downturn. According to a recent study by Finicity, 82% of consumers said they believe the current credit review process and criteria need to change to make it easier for responsible borrowers to prove their creditworthiness and increase access to loans.

 

About Finicity

Finicity’s mission is to help individuals, families, and organizations make smarter financial decisions through safe and secure access to fast, high-quality data. The company provides a proven and trusted open banking platform that puts consumers in control of their financial data, transforming the way we experience money — everything from budgeting and payments to investing and lending. Finicity partners with influential financial institutions and disruptive fintech providers alike to give consumers a leg up in a complicated financial world helping to improve financial literacy, expanding financial inclusion, and ultimately leading to better financial outcomes. Finicity is headquartered in Salt Lake City, Utah. To learn more or test drive its API, visit www.finicity.com.

 

Media Relations Contact:

Corbin Mihelic
104 West Partners for Finicity
corbin.mihelic@104west.com
316-209-9794

Finicity’s new integrated set of credit-decisioning services to digitally transform lending with accurate, real-time and consumer-permissioned data

SALT LAKE CITY, Utah – Sept. 28, 2020 – Finicity, a leading provider of open banking solutions, today announced the rollout of Finicity Lend™ for credit-decisioning. Finicity Lend, an integrated solution set of open banking data services, provides banks, lenders and fintech developers access to tools that enable their borrowers to directly permission data and insights into lending decisioning processes.

Finicity Lend addresses the need for more efficiency and accuracy, better risk management, real-time insights, and enhanced credit-decisioning by delivering consumer-permissioned financial data, automated and predictive analysis through powerful analytics, and expanded data sources. 

Finicity Lend incorporates several new data services with existing data services, as well as new capabilities in the Finicity open banking platform to create a more expansive, integrated solution. This platform and Finicity’s leading APIs provide the foundation for transforming the credit-decisioning process. 

“The growing impact of the COVID economic crisis and the potential impact on consumer credit confirms an issue that has existed for some time now — a need for a deep evaluation of the credit review process and how consumers can become empowered to get more benefit from their own financial data,” said Finicity CEO and Co-founder Steve Smith. “Our new Finicity Lend integrated solution set will complement the current credit rating system while leveraging the tremendous advantages of open banking to create an industry standard for assessing a borrower’s ability to manage a loan going forward. Real-time, permissioned data from multiple financial accounts is the lifeblood of our secure open banking platform, and empowers consumers to make better financial decisions, to mitigate risk for lenders and can increase overall financial inclusion.”

New CapabilitiesCash Flow Analytics, CRA Data Services and Payroll Data

Leveraging the Finicity open banking platform’s robust data intelligence layer, Finicity Lend provides a new alternative data service, Cash Flow, that analyzes financial account data delivering a broad set of cash flow attributes. This gives lenders more accurate insights into a small business or individual’s creditworthiness. The Cash Flow analytics service digitizes and automates the capture and delivery of data that previously required significant combinations of manual and automated processes to extract and analyze. The use of this alternative data is supported by the Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau, Federal Deposit Insurance Corporation, National Credit Union Administration, and Office of the Comptroller of the Currency as referenced in their Interagency Statement.

Also new to Finicity Lend are transaction and statement data services that are delivered in accordance with  FCRA compliance requirements, ensuring that Finicity’s consumer-permissioned data meets the legal requirements of the Fair Credit Reporting Act.  

Finicity’s decision to position itself as a Consumer Reporting Agency also ensures consumers have the ability to review, dispute, and correct any inaccurate information. This offers the most consumer-centric and consumer-friendly approach to using aggregated data within the credit-decisioning process.

Building on its leadership position with financial institution coverage, Finicity has added ADP as the first of many new payroll data sources to its open banking platform. Providing a direct connection to the payroll provider further enhances its ability to verify consumer-permissioned income and employment details — critical to many lending use cases — with real-time, direct from the source data.

Finicity Lend integrated solution set includes the following data services: 

  • Assets 
  • Income 
  • Employment
  • Transaction data 
  • Statement data 
  • Cash Flow 
  • Scoring Attributes

Expanding the types of data used to determine creditworthiness addresses longstanding consumer concerns that have surfaced more recently because of the global pandemic and resulting economic crisis. According to a recent study by Finicity, 95% of consumers negatively impacted by the economic crisis said they are concerned about their ability to rebuild their credit or take out a loan following this financial situation. Additionally, 82% of consumers said they believe the current credit review process and criteria need to change to make it easier for responsible borrowers to prove their creditworthiness. A majority of consumers stated that they would be willing to share current income information, payment history for utilities and other services, as well as rent history to give lenders an accurate view of financial standing and ability to pay.

Finicity Lend will make the credit process faster and more efficient for lenders who offer all kinds of loans, including mortgage, auto, small business, personal and more. Today’s lending process is in the midst of a vast digital transformation, placing Finicity and its technology at the forefront of this big-data revolution and the broader adoption of open banking in the United States. In June, Finicity announced that it had agreed to be acquired by Mastercard, a move which strengthens Mastercard’s existing open banking platform that has existed in Europe since 2019.

Open banking gives people and businesses more control over and benefit from their own financial data. This includes determining how and where third parties — such as fintechs or other banks — can access that information to provide new services like money management programs or initiate payments on their behalf. 

Finicity is a founding member of the Financial Data Exchange (FDX), an organization dedicated to establishing broader industry standards for open banking in North America. Smith currently serves as co-chair of FDX and played a key role in its creation. Finicity also has established relationships with a wide variety of service and application providers that allow individuals and organizations to better understand, manage and control financial processes — everything from budgeting, saving, and borrowing to transacting, investing, and lending. 

To learn more about the Finicity Lend integrated solution set, be sure to check out our virtual booth during LendIt Fintech USA 2020 from Sept. 29–Oct. 1 or request a demo today.

About Finicity

Finicity’s mission is to help individuals, families, and organizations make smarter financial decisions through safe and secure access to fast, high-quality data. The company provides a proven and trusted open banking platform that puts consumers in control of their financial data, transforming the way we experience money — everything from budgeting and payments to investing and lending. Finicity partners with influential financial institutions and disruptive fintech providers alike to give consumers a leg up in a complicated financial world helping to improve financial literacy, expanding financial inclusion, and ultimately leading to better financial outcomes. Finicity is headquartered in Salt Lake City, Utah. To learn more or test drive its API, visit www.finicity.com.

API Integration Will Provide Consumers Enhanced Control and Security Over How Their Data is Shared With Third-Party Apps and Services

SALT LAKE CITY, Utah – September 18, 2020 – Finicity, a leading provider of open banking solutions, announced today that it has signed a direct data agreement with Charles Schwab. This engagement is designed to enhance security of consumer-permissioned data through the use of an application programming interface (API). 

Through the API-based method of data sharing, Schwab clients of third-parties and apps that use Finicity solutions, can more securely connect to and allow direct access to their financial account data.  

“Finicity is committed to delivering our clients superior data access, quality, and security so that they can change the way their customers interact and benefit from their own financial data,” said Finicity CEO and Co-founder Steve Smith. “We are helping consumers to become more empowered with their financial data and utilize it in ways that improve their financial lives.”

This API integration with Charles Schwab provides the broader fintech and financial services community with access, through Finicity, to client-permissioned financial account data to deliver a variety of apps and services across financial management, payments, lending and beyond. The result is improved data stability and accuracy. 

The direct API experience will allow consumers, through their Schwab account relationships, to permission access to their account data.  

Finicity and Charles Schwab both use the Financial Data Exchange (FDX) API specification leveraging Open Authorization (oAuth) technology while eliminating the need for the user to share credentials when providing access to their data. 

Finicity has established relationships with a wide variety of service and application providers that allow individuals and organizations to better understand, manage, and control financial processes – everything from budgeting, saving and borrowing to transacting, investing and lending. Finicity works with many of the most popular PFM (personal financial management) tools, and many of the largest lenders and most innovative payment providers, among other services. 

To learn more about Finicity data services and their commitment to fast, reliable and high-quality data, visit www.finicity.com

About Finicity

Finicity’s mission is to help individuals, families, and organizations make smarter financial decisions through safe and secure access to fast, high-quality data. The company provides a proven and trusted open banking platform that puts consumers in control of their financial data, transforming the way we experience money for everything from budgeting and payments to investing and lending. Finicity partners with influential financial institutions and disruptive fintech providers alike to give consumers a leg up in a complicated financial world, helping to improve financial literacy, expanding financial inclusion, and ultimately leading to better financial outcomes. Finicity is headquartered in Salt Lake City, Utah. To learn more or test drive its API, visit www.finicity.com

Report Shows Americans with Income Under $50,000 Particularly Anxious;
Borrowers Looking for Better Credit Review Processes as COVID Exposes Limitations of Current Methods

SALT LAKE CITY, Utah — Aug. 11, 2020 — Americans suffering personally from the financial impacts of the COVID economy worry, even when the pandemic crisis wanes and the economy begins to recover, that restoring their credit may take some time and hinder their purchasing power, according to a new report.

Americans at lower income levels, under $50,000 in annual household income, are particularly fearful, according to the report from Finicity, called Combating the Emerging COVID Credit Crisis. The data from this group paints a stark picture of financial loss from COVID-19, credit anxiety, and lagging financial literacy. 

Most respondents said that participation in future credit markets may require changes that let responsible borrowers better prove their creditworthiness to lenders. 

The report proposes that the eventual economic recovery from the COVID recession will hinge on major purchases which require credit for most consumers and if that credit is withheld because of short-term impact from being out of work or at reduced income levels, then broader economic issues may result.

“This health crisis is likely to bring an impending credit crisis along with it, and a key component of economic recovery will be consumers’ ability to secure the loans and credit needed to finance major purchases,” said Steve Smith, CEO and co-founder of Finicity. “Even when this crisis subsides and people return to work at their previous income level, bouncing back from this hit to their credit could still take years.”

The report, which is based on a survey of 2,000 US respondents in June, found that 55% of all respondents have lost their jobs or had their income impacted because of COVID-19. Those job and income losses have put a significant financial strain on those impacted, the report said, and are affecting credit usage. Far more than half (64%) of the impacted said personal economic conditions have made it difficult for them to keep up with bills and payments.

As a result of the COVID-19 financial hardship, 61% of the impacted are now concerned their credit will be negatively affected. And, nearly all (95%) of the impacted are concerned about their ability to rebuild their credit and finance purchases even after the pandemic and recession pass. 

Lower Income Americans Especially Impacted

A deeper examination of consumers with annual household incomes below $50,000 shows that the pandemic created even more significant job and income losses, and also reveals an imbalance in credit opportunity for these lower income consumers. 

The report found 73% of those with a household income under $50,000 said this financial situation has made it difficult for them to keep up with bills and payments. That was significantly more than higher income levels: 57% of those with a household income between $50,000 and $100,000, and 54% of those with a household income over $100,000.

Changes in Credit Processes

The large-scale loss of jobs and income in the COVID economy, and the mass anxiety over the impact to credit scores and the lengthy process of rebuilding credit, leaves many consumers looking for changes in the credit review process, including 82% of respondents saying they believe the current credit review process and criteria need to change to make it easier for responsible borrowers to demonstrate creditworthiness.

Many consumers want a better understanding of which personal financial data is used in lenders’ credit-decisioning process, and how that data is used. Consumers with the lowest household incomes show the least confidence in their knowledge of their financial data, as only 51% of those with a household income under $50,000 said they know what financial information lenders are using to determine creditworthiness. 

“The idea of improving the credit process is not new, but the overall number of people who have been simultaneously affected as a result of COVID-19 shines a light on what borrowers have been facing for many years. There’s clearly a need to evaluate the credit-decisioning process and how consumers can become empowered to take control of their own financial data, and benefit from its use,” said Smith. “Real-time and reflective data is key to broader inclusion in the traditional financial system, and the emerging open banking model will provide the consumer empowerment needed while giving lenders a more robust picture of creditworthiness for borrowers.”

To read the full report, www.finicity.com/credit-impact-report, and to visit Finicity online, go to www.finicity.com

About Finicity

Finicity’s mission is to help individuals, families and organizations make smarter financial decisions through safe and secure access to fast, high-quality data. The company provides a proven and trusted open banking platform, that puts consumers in control of their financial data, transforming the way we experience money — everything from budgeting, payments, investing and lending. Finicity partners with influential financial institutions and disruptive fintech providers alike to give consumers a leg up in a complicated financial world helping to improve financial literacy, expanding financial inclusion, and ultimately leading to better financial outcomes. Finicity is headquartered in Salt Lake City, UT. To learn more or test drive its API, visit www.finicity.com.

Media Relations Contact

Corbin Mihelic
104 West Partners for Finicity corbin.mihelic@104west.com
316-209-9794

New agreement signifies alignment between TD and the financial technology company about access to customer financial data 

TORONTO, August 7, 2020 – TD Bank Group (TD) today announced a new data-access agreement with Finicity, which lays the groundwork for customers to request TD to facilitate the transfer of their financial data to services they want to use, including personal financial management apps supported by Finicity.

The North American agreement signifies alignment between TD and the financial technology company (Fintech) about how Finicity will access a customer’s financial data once directed by a customer of both TD and the Fintech. On the customer’s request, TD will transfer the customer’s financial data to the Fintech through a technology known as Application Programming Interfaces (APIs) that may eventually eliminate the need for customers to share their banking login ID or password in order to access third-party financial products and services.

Protecting Consumer Data

Consumers who are currently using financial products and services provided by some Fintechs are sharing their banking credentials in order to access these products and services. An API-based approach will help raise the level of data security for customers who want to use third-party financial management apps.

“The significant surge we have seen in the adoption of our own digital products and services has accelerated our work to create a market-led technology solution that will give customers looking to access digital services that are outside their bank, more comfort that they are transferring their financial data safely,” says Rizwan Khalfan, Chief Digital and Payments Officer, TD. “Our customers want digital solutions and we are focused on supporting their choices.”

Consumer-Directed Finance and Open Banking

The agreement with Finicity is part of TD’s response to customers’ need to leverage data stored with financial institutions for digital services. TD is a founding member of the Financial Data Exchange (FDX), a US-based industry consortium that promotes solutions to protect customer data, supports an API-based technology protocol and that recently launched in Canada with the support of leading Canadian banks and Fintechs. TD also recently invested in Akoya, a new, US-based company that will operate an API-based network for the secure sharing of financial data. In Canada, TD has been involved in government consultations to move Consumer-Directed Finance forward, while helping to protect consumer interests.

“We are committed to delivering superior data access, quality and security through the Finicity Open Banking platform, transforming the way consumers interact with and benefit from their own financial data,” said Finicity CEO Steve Smith. “Together with TD Bank, we are allowing consumers to become more empowered with their financial data and utilize it in ways that improves their financial lives.”

About TD Bank Group 

The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Group (“TD” or the “Bank”). TD is the sixth largest bank in North America by branches and serves over 26 million customers in three key businesses operating in a number of locations in financial centres around the globe: Canadian Retail, including TD Canada Trust, TD Auto Finance Canada, TD Wealth (Canada), TD Direct Investing, and TD Insurance; U.S. Retail, including TD Bank, America’s Most Convenient Bank®, TD Auto Finance U.S., TD Wealth (U.S.), and an investment in TD Ameritrade; and Wholesale Banking, including TD Securities. TD also ranks among the world’s leading online financial services firms, with more than 14 million active online and mobile customers. TD had CDN$1.7 trillion in assets on April 30, 2020. The Toronto-Dominion Bank trades under the symbol “TD” on the Toronto and New York Stock Exchanges.

About Finicity

Finicity’s mission is to help individuals, families and organizations make smarter financial decisions through safe and secure access to fast, high-quality data. The company provides a proven and trusted Open Banking platform, that puts consumers in control of their financial data, transforming the way we experience money — everything from budgeting, payments, investing and lending. Finicity partners with influential financial institutions and disruptive Fintech providers alike to give consumers a leg up in a complicated financial world, helping to improve financial literacy, expanding financial inclusion, and ultimately leading to better financial outcomes. Finicity is headquartered in Salt Lake City, UT.

 

Strengthens existing open banking capabilities with Finicity’s proven technology and talent

Enhances collaboration and co-creation efforts with fintechs and financial institutions

Furthers commitment to consumer-centric data protection and practices

 

PURCHASE, N.Y. – June 23, 2020 – Mastercard (NYSE: MA) today announced it has entered into an agreement to acquire Finicity, a leading North American provider of real-time access to financial data and insights. The purchase price is US$825 million, and Finicity’s existing shareholders have the potential for an earn-out of up to an additional $160 million, if performance targets are met.

The addition of Finicity’s complementary technology and teams strengthens the existing Mastercard open banking platform to enable and safeguard a greater choice of financial services, reinforcing the company’s long-standing partnerships with and commitment to financial institutions and fintechs across the globe.

Open banking gives people and businesses more control over their financial data. This includes determining how and where third parties – such as fintechs or other banks – can access that information to provide new services like money management programs or initiate payments on their behalf.

Mastercard has increasingly invested in this space over several years, including the 2019 launch of a set of comprehensive open banking solutions in Europe. The combination of these efforts with the Finicity technology powering platforms such as Quicken Loans Rocket Mortgage and Experian Boost has the potential to shape the next generation of open banking services.

“Open banking is a growing global trend and a strategically important space for us. With the addition of Finicity, we expect to not only advance our open banking strategy, but enhance how we support and accelerate today’s digital economy across several markets,” said Michael Miebach, president of Mastercard. “Finicity has a proven business, built on partnerships with thousands of banks and fintechs, similar to us. Finicity also shares our commitment to consumer-centric data practices, ensuring consumers have a say in how and where their information should be used. It’s through the use of next generation open banking APIs and clear consumer approvals that this financial information can deliver streamlined loan and mortgage processes, rapid account-based payment initiation and personal financial management solutions.”

“Since our founding, Nick Thomas and I have focused on developing industry-leading technology and building an organization that empowers consumers and organizations to better understand, manage and use their financial data to improve their financial lives,” said Steve Smith, chief executive officer and co-founder of Finicity. “Enabling people to access and control their data, while ensuring best practices to protect that data, will continue to drive tremendous innovation that increases financial literacy, inclusion and health.  This partnership with Mastercard helps us accelerate this mission globally.”

 

Strategic Rationale 

Advances Mastercard as a Strong Open Banking Partner for Fintechs, Financial Institutions. Finicity’s technology and dedicated employees will enhance Mastercard’s existing open banking solutions by enabling them to expand in North America and other key geographies. Today, Mastercard open banking services in Europe feature connections to more than 1,800 financial institutions. With a direct connection to the North American banking, lending and wealth management ecosystem, Mastercard will extend Finicity’s reach to be a one-stop partner for any consumer, bank, merchant, fintech or government’s data, payment and open banking needs.

Strengthens Capabilities and Offerings to Consumers and Businesses. Following the completion of the transaction, Mastercard’s existing technology and expertise combined with Finicity’s new analytics platforms, will help streamline the credit decisioning process for consumers and small businesses. Additionally, the integration of Finicity’s account owner verification tools to Mastercard’s New Payment Platform capabilities will deliver an improved ACH and real-time payments experience to consumers, merchants and businesses.

Enhances Commitment to Responsible Data Practices. Finicity shares Mastercard’s commitment to safe and secure data practices centered around the individual. Finicity’s co-founders have played a critical role in the advancing the discussion of best practices across multiple industries. Finicity has a strong commitment to deliver best-in-class data management practices by partnering with banks and their customers to ensure secure connectivity is established.

 

“Bank of America is a strong believer in giving people control over their financial information and the ability to share it securely,” said Mark Monaco, head of Enterprise Payments at Bank of America.  “We’ve worked with both Finicity and Mastercard, as well as industry groups such as Financial Data Exchange, to accelerate the adoption of the highest standards of privacy and security for data sharing, and to eliminate the retention and storage of individuals’ financial details by third parties. We look forward to continuing our work with Finicity and Mastercard to further improve the customer experience.”

“Finicity has been a strong partner of Rocket Mortgage during the mortgage industry’s tech revolution. Fast, easy access to consumer-permissioned data is critical to lenders who are making well-informed mortgage real time decisions. We are happy for the Finicity team in joining Mastercard and look forward to a continued partnership,” said Scott Elkins, senior vice president of Investments at Rocket Mortgage.

“Brex’s innovative offering uses Finicity’s connectivity, giving us access to the best quality business-permissioned data to power our platform,” said Henrique Dubugras, chief executive officer, Brex. “The combination of Finicity’s capabilities with Mastercard’s products and services will enable us to create innovative solutions to enhance our Brex offerings.”

“We are pleased to see the combination of Finicity and Mastercard,” said Craig Boundy, chief executive officer of Experian North America. “We look forward to collaborating with them in our ongoing mission to help consumers.”

As with past acquisitions, Mastercard does not expect this acquisition to be incrementally dilutive to its business for greater than 24 months. This dilution is driven by investments in the business, including its international expansion, as well as the impact of purchase accounting and integration related costs.

The transaction, which is anticipated to close by year’s end, is subject to regulatory review and other customary closing conditions.

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About Mastercard Incorporated (NYSE: MA), www.mastercard.com

Mastercard is a global technology company in the payments industry. Our mission is to connect and power an inclusive, digital economy that benefits everyone, everywhere by making transactions safe, simple, smart and accessible. Using secure data and networks, partnerships and passion, our innovations and solutions help individuals, financial institutions, governments and businesses realize their greatest potential. Our decency quotient, or DQ, drives our culture and everything we do inside and outside of our company. With connections across more than 210 countries and territories, we are building a sustainable world that unlocks priceless possibilities for all.

 

About Finicity

Finicity’s mission is to help individuals, families and organizations make smarter financial decisions through safe and secure access to fast, high-quality data. The company, which launched its first financial product in 2000, has since grown to provide financial data APIs, credit decisioning tools and financial wellness solutions. Finicity partners with influential financial institutions and disruptive fintech providers alike to give consumers a leg up in a complicated financial world. It has played a key role in innovative solutions like Experian’s Boost™ and it helps Rocket Mortgage by Quicken Loans access consumer-permissioned data for mortgage decisions. Finicity was awarded API World’s Finance API of the Year and has been an American Banker Best Places to Work in Fintech the past three years. Finicity is headquartered in Salt Lake City, UT and has approximately 500 employees worldwide. To learn more or test drive its API, visit www.finicity.com.

 

Forward-Looking Statements

This press release contains forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  All statements other than statements of historical facts may be forward-looking statements.  When used in this press release, the words “believe,” “expect,” “could,” “may,” “would,” “will,” “trend” and similar words are intended to identify forward-looking statements.  Examples of forward-looking statements include, but are not limited to, statements that relate to Mastercard’s future prospects, developments and business strategies, as well as Mastercard’s acquisition and operation of Finicity. We caution you to not place undue reliance on these forward-looking statements, as they speak only as of the date they are made.  Except for the company’s ongoing obligations under the U.S. federal securities laws, the company does not intend to update or otherwise revise the forward-looking information to reflect actual results of operations, changes in financial condition, changes in estimates, expectations or assumptions, changes in general economic or industry conditions or other circumstances arising and/or existing since the preparation of this press release or to reflect the occurrence of any unanticipated events.

Many factors and uncertainties relating to the proposed transaction, our operations and our business environment, all of which are difficult to predict and many of which are outside of our control, influence whether any forward-looking statements can or will be achieved.  Any one of these factors could cause our actual results or the impact of the acquisition to differ materially from those expressed or implied in writing in any forward-looking statements made by Mastercard or on its behalf.  Such factors related to the completion and impact of the acquisition include, but are not limited to, whether all necessary conditions will be met, and whether the transaction will close on agreed terms and in a timely manner.

For additional information on other factors related to Mastercard’s overall business that could cause Mastercard’s actual results to differ materially from expected results, please see the company’s filings with the Securities and Exchange Commission, including the company’s Annual Report on Form 10-K for the year ended December 31, 2019, and any subsequent reports on Forms 10-Q and 8-K.

 

Mastercard Investor Relations Contact

Gina Accordino, 914-249-4565

investor.relations@mastercard.com

 

Mastercard Communications Contact
Seth Eisen, 914-249-3153

Seth.Eisen@mastercard.com

 

Finicity Communications Contact

Andy Capener, 801-984-4231

andy.capener@finicity.com