Navy Federal Credit Union’s VP of omni-channel strategy and innovation Ryan Fairley discusses APIs, personal data and how open banking benefits members so they can control their personal information, manage how its accessed by external parties like third-party apps, and receive more transparency into the data sharing and open banking process.

Navy Federal recently signed its first data sharing agreement with open banking platform provider,  Finicity, a Mastercard® company. This allows Navy Federal customers to securely link their accounts to applications that use Finicity’s open banking platform.

You can read the full post Putting you in control of your personal data with a new API on the Navy Federal site.

The White House issued a directive, wanting to make it easier and more cost effective for consumers to switch banks. President Biden’s office on Friday said it “encourages the Consumer Financial Protection Bureau (CFPB) to issue rules allowing customers to download their banking data and take it with them” from bank to bank. The CFPB has had the authority to write rules like this since the 2010 Dodd-Frank Act. What the next steps look like for both financial institutions and consumers going forward.

Read the full article (behind a paywall).

President Joe Biden signed executive orders Friday aimed at promoting U.S. competition by providing more scrutiny of bank mergers and giving consumers greater control over their financial data. The order includes support for open banking regulations, allowing data sharing among financial services companies to foster a more convenient and transparent consumer experience. The White House said the order will “make it easier and cheaper to switch banks by requiring banks to allow customers to take their financial transaction data with them to a competitor.”

You can read about it at Banking Dive.

SimpleNexus announced an integration with Finicity’s Mortgage Verification Service (MVS) that allows lenders to streamline the verification of applicants’ assets, income and employment using a single embedded service.

Finicity launched MVS in February. The service leverages consumer-permissioned bank and payroll data to provide accurate, real-time insight into a borrower’s current assets, income and employment in minutes, without any paperwork. MVS has helped lenders shave up to 12 days off the origination process and is accepted by both Freddie Mac and Fannie Mae, making loans eligible for rep and warrant relief.

SimpleNexus is the first mortgage point-of-sale (POS) platform to offer Finicity’s MVS as an integrated solution. Without ever leaving the SimpleNexus mobile app, borrowers can use MVS to complete asset, income and employment verification in a few simple steps that take just minutes to complete. Lenders receive validated payroll, paystub and bank account data in real time and can refresh the data within 10 days of the loan closing as needed to fulfill investor requirements.

Read the full release here.

The most recent issue of Mastercard’s The Different Times is out now! In this issue, Mastercard covers the best way to rebuild global economies and businesses: together. Download issue 3 of The Different Times to get insights into:

  • How borderless payments are keeping people connected
  • A new age of digital commerce opportunities in Africa
  • Giving consumers greater control with “Buy now, pay later”
  • How open banking creates financial opportunities for all, with Finicity CEO Steve Smith
  • And much more!

Finicity Senior Vice President of Data Access, Ryan Christiansen, recently provided an inside look at the future of financial data connections, the importance of industry standards in building a trusted open banking ecosystem, and how open banking promotes financial inclusion at large. This interview covered:

  1. The types of data connections (API, structured and screen scraping) and where the industry is going
  2. Why data access agreements with core banking solution providers like Jack Henry, Fiserv, FIS, etc., are so important in eliminating screen scraping
  3. Finicity’s involvement with the Financial Data Exchange (FDX), particularly in helping to create industry standards
  4. How Finicity is focused on financial inclusion and why
  5. How open banking helps promote broader financial inclusion

To find out the answers to these questions, check out the full interview here.

Jack Henry & Associates, Inc. and Finicity, A Mastercard Company have partnered together to provide a direct integration to the Banno Digital Platform. The agreement enables community financial institutions to provide consumers with the freedom to control, access, and share their financial data, creating a real-time picture of their financial health.

Speaking of the agreement, Steve Smith, Head of Global Open Banking at Mastercard and CEO of Finicity said, “Finicity and Jack Henry share a goal of providing the industry with open banking standards that enable consumers to access, use, and benefit from their financial data. As highly regulated and highly connected companies, we’re in a position to help consumers make more informed financial decisions and improve their financial health.”

Read the full press release. 

Open banking is transforming the money experience, but as an emerging and evolving innovation, it’s still an elusive concept for many. Fortunately, Mastercard recently published an open banking primer that answers some fundamental questions:

  • What is open banking?
  • What kinds of open banking services are there?
  • Can open banking grow financial inclusion?
  • How does open banking work around the world?
  • Is open banking safe?

Check out Mastercard’s guide to open banking to get the answers to these questions and find out what makes open banking so transformative.

One day at a time. That was Sam Magtanong’s mantra when COVID-19 hit, threatening not only the long-dreamed-of expansion of the San Diego microroastery he built with his wife and two friends, but of the business itself.

“My vision was, if I could stay open for the next day, and if I can pay my staff one more day, and if I can serve one more cup of coffee, there’s a blessing there,” he says. “We just looked at it that way, and we kept just trying to stay open another day.”

For many entrepreneurs, accessing the capital they need to build their businesses can be challenging even in flush times. When Sam and Beverly Magtanong and their partners Jelynn Malone and Mike Arquines opened their first Mostra Coffee location in 2018, they struggled with cash flow and turned to Lendio and Finicity for a loan.

To help small businesses get the credit they need to grow and thrive, Lendio harnesses Finicity’s open banking platform, which lets people more easily share their banking data with other banks, lenders and fintech companies. It gives lenders a more holistic view of a person or business’s finances to help them determine their creditworthiness.

“Eliminating financial hurdles and introducing small business owners to capital opportunities they may not know exist can extend the spirit of entrepreneurship to more people,” says Denada Ramnishta, senior vice president of Lender & Partner Strategy at Lendio.

The pandemic hit when Mostra Coffee was getting ready to open a second coffee shop. Lendio helped Mostra Coffee obtain a U.S. Paycheck Protection loan to keep the business running, hire back staff they had laid off at the start of the pandemic, and finish work on their second location. “I went from feeling a sense of desperation to feeling a sense of relief,” Magtanong says.

With the newest round of PPP loans, Lendio has started working with Finicity’s open banking platform to authenticate bank statements to reduce the risk of fraud in the process. Lendio and Finicity will be bringing their joint capabilities to small businesses in the U.K. and other markets in the coming months through a new strategic agreement. To read more about Mostra Coffee and the open banking effect, go to the Mastercard Newsroom.

Finicity co-founder and CEO Steve Smith recently provided an inside look at open banking, Finicity’s evolution, and the importance of financial inclusion. This interview covered:

  1. How did Finicity start?
  2. What challenges did Finicity face in evolving from a single app to a full open banking platform?
  3. What can you do with an open banking platform?
  4. What is the potential for open banking?
  5. What sort of responsibility do you feel you have to support people who may be struggling financially?

To find out the answers to these questions, check out the full interview.