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.

Finicity was named one of the Best Fintechs to Work For in 2021 by Arizent, publisher of American Banker and National Mortgage News. Finicity is one of nine companies that have been included on every year of the list’s existence dating back to 2018.

Even though many fintechs saw growth accelerate over the last 12 months, they were not immune to the political, social and financial turmoil wrought by the COVID-19 pandemic. Companies  had to respond nimbly, as the crisis demanded shifts in business strategy and leadership style. You can read what leaders learned over the past year as well as view the full list here.

Finicity was also profiled for its timely business strategy and acquisition by Mastercard. You can read it here ($).

You can also explore open positions at Finicity on our Careers page.

 

When Kristy Kim moved to the U.S. with her family from South Korea, she worked hard to achieve the American Dream. But when she graduated from a top university and landed a high-paying job in investment banking, she realized her years of scrimping and saving didn’t pay off in one crucial way – she had no credit file, so she wasn’t eligible for a car loan. She had to pay cash. 

Now Kim has launched TomoCredit Inc., a startup that uses with Finicity’s open banking platform to determine which applicants are qualified for credit, and how much credit to offer them. Traditionally, lenders use a credit score, but many people, including immigrants to the U.S. and young people, have not built up a credit history. TomoCredit’s research indicates that legacy lending policies keep 40 million people from accessing credit and the ability to build wealth. 

Using consumer-permissioned real-time data from than 10,000 financial institutions, Finicity can help TomoCredit get a clearer picture of an applicant’s financial health, improving risk assessment and credit decisioning. Once approved, applicants receive a TomoCredit Mastercard credit card with no fees and 0% APR. 

“Enabling people to access and control their data, while ensuring best practices to protect both that data and the consumer, will continue to drive tremendous innovation that increases financial literacy, inclusion and health,” Finicity CEO Steve Smith says. 

Want to learn more about Kim’s journey, how the TomoCredit Mastercard works, and how TomoCredit. Finicity and Mastercard are enabling inclusive credit? Read more on the Mastercard Newsroom.

The FinTech Breakthrough Awards is the premier awards program founded to recognize the FinTech innovators, leaders and visionaries from around the world. This year, Finicity was recognized as the best Consumer Lending Platform.

Read the full press release. 

Finicity was named to the Women Tech Council (WTC) 2021 Shatter list. The list names the technology and innovation companies that are enacting impactful programs and inclusive cultures to accelerate removing the glass ceiling for women in tech.

Read the full press release.

FinLedger discusses account connectivity, data aggregation and what the future looks like after screen scraping. Ultimately, the success of APIs and open banking comes down to consumer control, access to consumer data, and whether it’s highly secure.

You can read the full article here.

Bloomberg Law discusses the expectations that the CFPB should create regulations for consumers’ safe sharing of their bank data with finance apps.

The Consumer Financial Protection Bureau has to decide how to apply dated consumer finance laws—aimed at protecting consumers from data breaches, flawed credit reports, and fraudulent transactions—to the new world of open banking.

Read the full analysis ($) here.