Finicity CEO Steve Smith stopped by Lendit Fintech’s One-on-One with Peter Renton. Steve talks open banking’s everyday applications, the state of open finance around the globe and what we’re doing to ensure consumer-permissioned financial data is used responsibly. 

Listen to the podcast episode here.

Jack Henry & Associates, Inc.® is a leading provider of technology solutions and payment processing services primarily for the financial services industry. Jack Henry announced today that Finicity, Akoya, and Plaid are among the first open banking pioneers to integrate to the Banno Digital Platform using the Banno Digital Toolkit℠. This provides better security, privacy and transparency for the nearly 6 million consumers banking with the Banno Digital Platform by removing screen scraping. 

Learn more about Finicity’s partnership with Jack Henry here

Mastercard’s Jess Turner, EVP New Digital Infrastructure and Fintech, was featured in PYMNTS The Way Payments Are Now Done eBook discussing how account opening needs to follow customer expectations to provide the best experience possible. You can read the full report at PYMNTS, but here’s what she had to say: 

As we contend with in-person restrictions, the demand for and use of digital financial services has grown. Mobile banking, account opening or making real-time payments are now not only our first reflex but often a necessity. Mastercard’s 2020 Global State of Pay study found 73% percent of consumers and 67% of small businesses had used mobile banking apps to manage their finances and make payments in the past 12 months, and 53% of consumers said they were using them more now than they had before.

Consumers want flexibility in how they manage their finances, and true financial services innovators are delivering experiences that provide this choice. Opening checking accounts online is increasingly part of a consumer’s normal payments routine, and it is powered by open banking, which has also seen significant acceleration during COVID-19 and is expanding globally. Nearly two-thirds (64%) of the checking accounts opened during the height of the pandemic were submitted either online or on a mobile device with more than eight in ten banking app users reporting the experience was “easier than they thought.” That’s largely due to open banking.

Digital account opening is here to stay, and consumers expect to open an account in seconds. But issues like manual uploads and micro-deposits add delays. Open banking introduces new ways for financial institutions and apps to verify account ownership and authenticate credentials for opening and funding accounts. The balance of risk, compliance and customer experience is delicate – efficiency can’t compromise fraud prevention. Trust is critical in our hyper-connected digital environment and the consumer must be at the center of control, ensuring greater transparency.

That’s why we have a solution that provides secure, lightning-fast account verification. Mastercard’s open banking network is removing friction points in the account setup, onboarding and funding process. Open banking introduces new ways for financial institutions to verify account ownership and authenticate credentials for opening and funding that include account owners, account details, and balances that boost sign-ups and reduce abandonment. The connectivity is also useful when customers have an existing relationship with a financial institution but want to move money or add services. Data services help financial institutions verify account details and balances in milliseconds while moving money accurately and securely.  

With the rapid emergence and global expansion of open banking, the money experience will never be the same. At Mastercard, we are redesigning our network to power the future of payments and services. A global open banking network, coupled with our existing multi-rail expertise, empowers our partners to better serve consumers and their changing expectations with digital experiences.

Mastercard announced a bank-driven buy now pay later (BNPL) platform to allow borrowers to apply for loans through mobile banking and be able to use a virtual card when making the purchase. The platform will pre-qualify borrowers for zero-interest installment loans.

Approved borrowers can fund their purchases with participating lenders and repay the loans through their card, checking or savings account.

You can read on how Finicity factors in at American Banker ($).

Finicity CEO Steve Smith testified before the House Committee on Financial Services FinTech Task Force on Tuesday, Sept. 21. He cited open banking powered by data aggregation as the game changer that flipped the data experience to one that empowers consumers and small and midsize businesses with access, control and the consented use of data.

As it continues to emerge, policy makers “will play a meaningful role in the direction and pace of this transformation by providing clarity on data protection expectations, data privacy requirements and consumer data rights.”

You can read the summary of his testimony at PYMNTS or you can watch the full hearing on C-SPAN.

Nick Baguley, VP of Data Science at Finicity, writes in the Fintech Times about how artificial intelligence (AI) and machine learning (ML) has the ability to make lending and verification processes easier and more efficient. Most importantly he talks about what’s already happening today and where it’s headed.

Read the entire article here.

PYMNTS talked with Finicity CEO Steve Smith about open banking, open finance, data aggregation, where we’re headed with technologies and standards and how consumer-permissioned data is the future of lending.

Innovation is largely occurring differently in each fintech segment so the usefulness of a broad open banking platform to provide relevant, quality data across investing, budgeting and mortgage is becoming more and more important.

“We’re entering an age in which – through open banking – consumers are increasingly comfortable sharing their personal financial data with third parties. And amid that “gold rush,” a slew of companies have popped up (mostly fintechs), promising to upend financial services, though they tend to focus on segments of financial life – investing, let’s say, or mortgages, or high-yield savings accounts.”

Read the full article here.

Pentadata announced a partnership with Finicity to help developers crate apps that delive value-added services to merchants and consumers through payment card data. Consumers can permission acces to their data to make payments through apps, receive targeted discounts, and enable clients to present targeted digital offers to their members. Through the partnership, Pentadata customers can use account owner information, transaction aggregation and ACH solutions as part of Fincity’s Lend, Pay and Manage solutions. The data will help drive a better experience for millions of loyalty program members of Pentadata customers that include fintech apps, merchants and travel-related companies.

You can read the full press release here.

Finicity’s SVP of Enterprise & Strategic Sales Lynn Sheck was named to HousingWire’s 2021 Women of Influence list. The honor recognizes Sheck as one of the most influential women in leadership in the housing economy. Sheck’s efforts are helping to transform the mortgage experience through Finicity’s open banking platform, specifically the new Mortgage Verification Service product. You can read why she received the honor at HousingWire and you can see the full list of honorees.

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.