Synctera, a leading FinTech banking provider helping innovators build their own FinTechs more efficiently, is expanding its partnership with Mastercard by integrating Mastercard’s open banking platform (provided by Mastercard’s wholly owned subsidiary, Finicity) to provide account verification solutions for Synctera-powered FinTechs. The addition of consumer-permissioned data from an open banking platform allows early-stage FinTechs access to the data they need to mitigate fraud, maximize confidence, and provide more choice in payment transactions to improve user experiences.

“Mastercard’s open banking platform provides consumer-permissioned data that is critical to enabling all ecosystem players, opening the door for the future of financial experiences, and can help streamline account verification to reduce friction between apps and consumers,” said Andy Sheehan, Executive Vice President, U.S. Open Banking at Mastercard. “Mastercard and Synctera’s partnership enhances the support and collaboration that is critical to FinTech innovators and will allow entrepreneurs and developers the ability to go to market quickly and ultimately deliver more consumer choice.”

Read more here.

As part of its Smarter Faster Payments Conference here, Nacha announced its 2022 Pay-Me Award Honorees, recognizing companies and organizations that have helped advance the ever-evolving payments industry.

The Excellence in Smart Payments Decisioning award will go to Finicity, a Mastercard company, for its Smart Payment Decisioning Tools.

See all the honorees here.

Bonifii today announced that it has selected Mastercard, through its wholly owned subsidiary Finicity, as the preferred open banking provider for its MemberPass® credit unions to access consumer-permissioned bank data, to inform underwriting for different loan types across mortgage, auto, personal and small business.

Mastercard’s open banking platform can deliver verification of income, asset, and employment reports directly to credit unions during the underwriting process, all built with consumer-permissioned data from the borrower. This technology enables credit unions to offer a digital-first method through which their borrowers can instantly provide the required information that the credit union needs to make a lending decision and replaces manual processes historically associated with the underwriting process for both the borrower and the lender.

Read more here.

Finicity has been an open-banking catalyst for Mastercard. One new Mastercard product, called Payment Success Indicator, relies on bank account information provided by the consumer on an opt-in basis. The product was developed through open banking, or a process for sharing bank account information with third parties.

A merchant, bank, digital wallet or payment service provider uses this bank account information to access a consumer’s balance and historial behavioral risk pattern for each transaction. That informs the Payment Routing Optimizer, which recommends the right day and payment rail (such as same-day ACH or next-day ACH) that strikes a balance for cost, speed and risk.

Read more at American Banker.

Consumer advocates and fintechs say a closer look needs to be taken at traditional credit scores and models, perhaps using a recently released fairness framework.

“People are realizing more and more that the data that we are using to build these systems is biased. It’s tainted. If you’re using biased data, you’re going to get biased outputs. So examining that data, making sure it’s clean, making sure it’s representative, making sure that it’s fair and accurate is really important,” said Lisa Rice, president and CEO of the National Fair Housing Alliance.

Read more about how credit scoring is changing here.

 

 

Finicity, a Mastercard company, and Fiserv, Inc., both leaders in open banking technology, are advancing the future of open finance through secure data sharing. A data access agreement between the companies will allow thousands of Fiserv financial institution clients to enable consumers to provide clear and explicit permission to securely share their account information with apps that use Finicity’s open banking platform.

“This data access agreement complements Mastercard’s longstanding partnership with Fiserv, demonstrated by our aligned missions to empower consumers and organizations to permission the use of their financial data for their benefit,” said Ryan Christiansen, SVP, Data Access Partnerships at Mastercard. “The strong payments connectivity between Mastercard and Fiserv via tokenization, traditional processing and beyond extends across infrastructure, applications and services to the secure and highly reliable API connections we’re enabling through open banking.”

Finicity is a leader in signed data access agreements. Through this partnership with Fiserv, a major core banking solution provider, Mastercard connectivity continues to outpace competitors and further diminishes credential use within the ecosystem.

Read more here.

Mastercard is launching a new suite of Smart Payment Decisioning Tools to reduce risk in ACH payments and optimize cost and speed through open banking.

Merchants can now use advanced data analytics and machine learning to make the payment experience safer and smarter for everyone. Mastercard is launching two new Smart Payment Decisioning Tools, Payment Success Indicator and Payment Routing Optimizer, part of Finicity’s open banking suite of services that enables payments and account creation seamlessly and securely.

Read more about this new solution here.

Bob Schukai, Mastercard’s Executive Vice President of Technology Development, New Digital Infrastructure & Fintech, lays out the Mastercard philosophy around protection of consumer data:

“Strong connectivity is important; however we also know that handling people’s data is an enormous responsibility. We have an obligation to keep our customers’ data secure and we set out four simple principles for the use of data. Consumers own the data they produce every day — and have the right to understand and control how it is shared and used. Ultimately, consumer data should be used to make their lives easier.

If you are building a fintech that is innovating with consumer data, it’s critical to clearly outline a set of privacy standards and data management practices up front. Protect that data using an appropriate set of privacy-enhancing technologies to back your claims. Treat the data of your users as if it was your own.”

Read more here, as Bob drills down into the data principles that guide Mastercard.

Bob Schukai, EVP, Technology Development, New Digital Infrastructure & Fintech at Mastercard and others weigh in on what technological and philosophical advances can be made to make open banking even more effective, inclusive and innovative.

Read more here.

The U.S. lags other countries in open banking, the practice of enabling the sharing of customer account information between banks and third-party service providers. A White House executive order issued last July may give it a domestic push.

In the ongoing discussion, the consumer benefit of account-data portability and control runs up against competitive considerations among financial institutions, new-breed fintechs and data aggregators.

Read the full article here.