In partnership with Mastercard Open Banking, with services provided by Finicity, a Mastercard company, Fannie Mae continues to work toward improving access to affordable housing with secure banking-powered technologies, speeding up the application process for lenders and reducing the need for manual document preparation.
In addition to helping lenders validate assets and assess a borrower’s rent payment history and cash flow, Fannie Mae’s Desktop Underwriter® (DU®) validation service gives lenders the power to verify a borrowers’ income and employment information using a single 12-month asset report. This digital enhancement is saving lenders time while enhancing the borrower experience.
Demand for a better mortgage process
Traditionally, borrowers have been asked to manually collect and share stacks of sensitive income documents with mortgage loan officers, a time-consuming and less secure process that creates inefficiency for both the borrower and the lender.
A complete digital verification solution for mortgage lenders
DU provides a digital option that simplifies and removes friction from the application process. When applying for a mortgage, borrowers can access Finicity’s user-friendly Connect consent flow to link their bank accounts, enabling their data to be easily shared with the lender.
With one report from Finicity, DU can help lenders validate a borrower’s asset, income and employment information while simultaneously analyzing cash flow and rent payment history to help approve more potential homeowners.
All the verifications needed to process a mortgage application can be conducted on the spot, without paperwork.
Fannie Mae’s latest innovation leverages Mortgage Verification Service (MVS) from Finicity as a leading report supplier to power the verifications needed to process a mortgage application.
- Fannie Mae’s Digital Verification Solution requires an asset report of 12 months or more to run
- Lenders must request that this feature be turned on
“With Desktop Underwriter® (DU®), lenders can now get even more benefits from using a single 12-month asset report. We continue to look for ways to help lenders streamline their validation processes and improve the borrower experience, and this latest enhancement helps them do just that.”
Peter Skarnulis, Fannie Mae Vice President, Business Account Management Solutions
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Mastercard provides open banking technology to support leading partners across the ecosystem with safe, flexible and secure lending and payments experiences, partnering with leading players across the ecosystem. Our partnerships with Worldpay from FIS, the merchant solutions business of global financial services technology provider FIS, Zip and J.P. Morgan Payments are driving innovation in billing, lending and payment choice as we scale our global network.
Read more here.
J.P. Morgan Payments’ Pay-by-bank solution, which provides billers with the ability to allow their customers to pay bills directly from their bank account, is now live. Leveraging Mastercard’s open banking technology to enhance J.P. Morgan Payments’ ACH capabilities, Pay-by-bank offers payment choice and provides a simple, secure and frictionless experience for billers to offer to their customers.
For consumers, Pay-by-bank elevates the checkout experience, allowing billers to provide their customers with the option for a new, secure way to pay. The solution uses the consumer’s existing authentication protocols with their bank, including technologies such as biometrics, to retrieve all necessary information to execute a payment. As a result, they can securely make payments like rent, utilities, tuition, insurance, and healthcare.
J.P. Morgan Payments is a global leader, processing more than $9 trillion in payments daily, operating in over 160 countries and over 120 currencies.
Read more about this innovative new solution here.
NEWPORT BEACH, Calif.–(BUSINESS WIRE)–FundingShield, a market-leading, cloud-based firm providing fintech solutions to manage risk, compliance and fraud prevention, has entered a partnership with Mastercard to leverage its open banking platform delivered by Finicity, a Mastercard company. FundingShield provides live, source data-based technology products and SaaS solutions that have been used to secure the funds of over $2.5 trillion in mortgage closings.
FundingShield CEO Ike Suri shared, “FundingShield has over 95% coverage of licensed service providers in the real estate, mortgage, closing and settlement space in our live repository. This partnership with Mastercard allows us to leverage its open banking connectivity of over 95% of U.S. based deposit accounts for consumer-permissioned access to real-time, bank-sourced data to expand our B2B and B2B2C payment verification solutions for clients.“
This partnership expands FundingShield’s offering within the real estate, mortgage and title sector with solutions that protect buyers, sellers, brokers, bank and non-bank lenders, warehouse lenders, and title and settlement entities. More broadly, the firm’s solutions provide risk management surrounding payments to vendors, suppliers, and other outgoing fund recipients in markets where cybersecurity experts estimate cybercrime costs to reach over $10 trillion annually by 2025.
Learn more about this partnership here.
Loanspark partnered with world-leading tech brands Mastercard, Middesk, and LexisNexis to enhance, speed up, and secure service delivery for its co-branded partners and their business customers.
A partnership with Mastercard enables Loanspark to leverage Mastercard’s open banking platform, with some services delivered through its subsidiary, Finicity, allowing businesses to establish direct consumer-permissioned connections with their customers’ bank accounts. This enables SMB owners to submit financial information securely and easily while focusing on running their business, and in turn allowing Loanspark to make better credit decisions by quickly verifying the borrower’s financial details. Accurate borrower information minimizes the lending risks and increases accuracy and speed of funds for SMBs.
“Small businesses are increasingly looking for greater choice in how they borrow, pay and manage their finances. Partnering with organizations like Loanspark provides small businesses with a streamlined process to gain access to capital and putting their financial worries at ease.”
Andy Sheehan, EVP, US Open Banking, Mastercard.
Read more about this partnership here.
American Banker makes the case for smarter innovation through collaboration
Mastercard is extending its services and technology reach, including deals with JPMorgan Chase, LSEG/Giact, Stax’s CardX and Jack Henry & Associates, enabling Mastercard partners to connect merchants to payments, improve authentication and streamline transaction processing.
“For the partners, the networks like Mastercard bring their technology and processing capabilities, but I think even more crucially they bring that brand and extremely high levels of trust,” said Gilles Ubaghs, strategic advisor for commercial banking and payments at Aite-Novarica Group.
Mastercard’s multi-rail payments approach gives consumers more choice. Digital first and open banking offer an expansion of that choice, while ensuring transactions are easy and safe.
Read about Mastercard’s innovative partnerships at American Banker.
Choosing messaging apps over landlines and electric scooters instead of gas-guzzling cars, tech-savvy Gen Zers and Millennials think and experience life very differently to Gen X and Baby Boomers.
Although their priorities on money differ, there’s one common thread that pulls the generations together: each wants to be in a healthy financial position to enjoy the lifestyle they want both now and in the future.
Like generations before them, to reach their goals, digital native Millennials and Gen Zers are fast turning to budgeting apps such as Quicken Inc’s Simplifi which helps people stay on top of all their finances in under five minutes a week.
Driven by consumer-permissioned data from sources including Mastercard’s open banking platform, Simplifi pulls together a wealth of data ranging from checking, savings, stock portfolios and retirement accounts in addition to the other account types that Simplifi integrates into a single, easily customizable dashboard.
“Putting an emphasis on how we categorize data helps to optimize time spent by customers on tracking their finances,” said Kristen Dillard, Quicken’s vice president of product management. “Now users can see their investment balances, account types and holdings in real time, while personalizing the look, feel and function of the app.”
It’s a one-stop shop that gives users a big picture view of their finances and lets them choose how they track their money, set spending plans, pay bills, and channel money into rainy-day funds.
“People are looking to do the same basic thing across generations. They worry: ‘How do I balance my bills with the fact I need to save for retirement, or how do I make sure I spend my money on things that really matter to me, or how do I make sure that inflation isn’t getting the best of my finances,” says Dillard.
To tune into its mobile-first Millennial and Gen Z users, Quicken looked to the fitness and gaming industries for inspiration on how to help Simplifi customers personalize their experiences.
Younger users want ease and flexibility when it comes to budgeting. Some might like to track every dollar, similar to tracking every carb and calorie, while others might just want a view of how much cash they can spend on entertainment or travel. Simplifi lets each user decide exactly how they want to slice and dice their spending and savings each month, while push notifications warn if they max out their set budgets.
For generations who have grown up gaming, receiving rewards for paying bills on time and reaching net worth goals makes the process fun, encouraging them to stick to their financial health plans.
“Everybody’s approach to personal finances is unique. You have to allow customers to see that data and manage that data in a way they want,” says Dillard.
“Younger generations expect everything to be in an app. They’re mobile first, they expect to do everything on the go, and they expect efficiency and ease.”
With Millennials and Gen Zers less likely to take lifelong jobs with plump pension plans, Simplifi helps prepare for the future by pulling in wealth data that let users easily track multiple retirement accounts.
There’s definitely a different mindset between younger and older generations. In 30 years, will we see the same trend we’ve seen with older customers where they end up in a better financial place? Adopting the right financial tools can be the first step to achieving those goals.
If you are interested in learning more about Quicken, you can do so here. Click here to learn more about Simplifi by Quicken.
GIACT, an LSEG (London Stock Exchange Group) business, today announces a partnership with Mastercard to leverage its open banking capabilities to provide a secure account verification solution for customers.
The partnership will build on LSEG’s existing suite of digital identity and fraud solutions, allowing businesses to use a multi-method approach to verify account information for over 95%* of U.S. deposit accounts.
This single uniform platform solution authenticates account ownership and enables financial institutions to expand and modernize their account verification capabilities while reducing the risk of fraud.
With Mastercard’s open banking technology, GIACT will be able to deploy Nacha-compliant account verification solutions across its growing array of Customer and Third-Party Risk businesses. GIACT customers will have access to consumer-permissioned data to verify bank account owner, income account balance and transaction information. By allowing customers to verify a vast array of information within a single bank account, institutions can fulfill customers’ needs more quickly and reliably – streamlining onboarding, decreasing fraud exposure, and supporting compliance.
Read more about Mastercard, GIACT and this partnership here.
*Coverage of US deposit accounts through Mastercard open banking network, bank consortium data sources
Today, Mastercard is announcing that it has added advanced analytics to its Open Banking platform delivered by its subsidiary, Finicity in the U.S. These analytics can help lenders manage their risk profiles while also adding diverse and inclusive credit models for small business loans as well as ongoing monitoring and expansion of credit card lines.
“Small businesses are increasingly looking for greater choice in how they borrow, pay and manage their finances,” said Jess Turner, Mastercard’s Executive Vice President for Global Open Banking and API. “Open Banking provides lenders the owner-permissioned data and advanced analytics they need to offer more choice in financial services to small businesses, which are the backbone of the American economy.”
Read more about Open Banking for Business and how we’re innovating with our partners here.
Highnote has become the latest Mastercard Engage partner. As a qualified technology partner within the Mastercard Engage network, Highnote can help businesses quickly build and deploy embedded finance solutions at scale. Through this partnership, cardholders can initiate transfers directly in and out of card products powered by Highnote.
This partnership additionally enables customers to not only take advantage of Highnote’s industry-leading ACH origination, card issuance, and money movement capabilities but also instantly verify cardholders’ accounts, with their permission.
“The pandemic accelerated the adoption of digital payments through embedded finance,” says Mastercard’s EVP, U.S. Open Banking, Andy Sheehan. We see this partnership as an excellent opportunity to give consumers and businesses more choice in how they pay for goods and services. We’re thrilled to bring together Highnote and Mastercard teams to allow enterprises to seamlessly embed payments into their existing digital products.”
Take a deeper dive into the innovation of this partnership here.