Mastercard today announced an expansion of its Engage partner network to include its open banking services, offering customers easy access to several technology partners that can quickly build and deploy open banking solutions for payments and lending decisioning at scale.
According to Mastercard’s 2022 New Payment Index, 83% of consumers globally use digital tools for at least one financial task, and more than half use technology for five or more tasks.
The initial partners to join the Mastercard Engage program for open banking include Dwolla, FinTech Automation, i2c, Link Financial Technology, LoanPro, Nova Credit, Provenir, Synctera, Tern and Usio, Inc. Through this new program, these providers will partner with Mastercard open banking to offer services to their clients. Other benefits are fewer contracts, faster access to customers, data security and access, and overall flexibility to better leverage Mastercard’s robust open banking services.
Since 2018, nearly 150 partners around the world have joined the Mastercard Engage program. In the last year alone, nearly 100 Engage partners have helped their customers deploy new, innovative solutions on more than 250 million accounts with Mastercard digital services, including all-digital consumer payments experiences, tokenization, digital wallet, mobile POS solutions and now open banking.
Open banking through Mastercard and its technology partners allows businesses to establish direct consumer-permissioned connections with their customers’ bank accounts. Through these consumer-permissioned connections, businesses can verify accounts for payments and payouts, check balances to reduce payment failures, and cut fraud by confirming bank account ownership. This has improved the payment experience for both the businesses and their customers.
Similarly for lending, borrowers can directly permission data and insights through the ecosystem to support their lending decisioning processes. This also means a better lending experience for both the lender and borrower, as it provides financial insights, expanded data sets not available through paper submissions, increased financial inclusion, and a simplified experience.
Some Mastercard open banking platform services are delivered through its wholly-owned subsidiary, Finicity. Open banking services through the Engage is a global program, additional partners across markets will be announced in coming months.
“Data is a crucial element of the Open Banking movement across the globe,” said Dwolla President and COO, Dave Glaser. “At Dwolla, we’re focused on powering innovations with sophisticated account-to-account payment solutions and our partnership with Mastercard complements our open banking strategies to help increase the capabilities of the payment experience to our network of businesses.”
“We’re delighted to be among the first Mastercard Engage open banking network partners to enable providers to expand consumer access to credit by unlocking permissioned based use of open banking data,” said Ava Kelly, Chief Product Officer at i2c Inc.
„As the leading API first loan management and servicing technology, our customers depend on and trust our loan management platform to monitor, optimize and defend their extended capital. We view the Mastercard engage program as a promising channel to accelerate technology partnerships, expand our capability to new customers, and introduce new capabilities to our existing client base,” said Rhett Roberts CEO/Co-Founder LoanPro
„Open banking has tremendous potential to better empower consumers underserved by the traditional credit system. This partnership enables lenders to seamlessly access new risk insights for more predictive underwriting while providing consumers more control and transparency to manage their financial lives,” says Chris Hansen, Head of Channels & Alliances at Nova Credit.
“We’re excited to help organizations embrace open banking and propel faster innovation by expanding our relationship with Mastercard,” said Carol Hamilton, Senior Vice President, Global Solutions for Provenir. “Provenir powers risk decisioning processes across identity, credit and fraud. Through the unique combination of Provenir’s data marketplace, purpose-built machine learning models and on-demand decisioning, Provenir provides a cohesive risk ecosystem that enables organizations to make smarter decisions across the entire customer lifecycle while elevating fraud prevention and financial inclusion. Organizations choose this platform to accelerate the launch of products such as Buy Now Pay Later (BNPL), small and mid-size enterprise lending, automotive financing, and more.”
“Synctera was founded to help builders everywhere challenge the traditional developer landscape and make building the future of FinTech fast and simple,” said Peter Hazlehurst, co-founder and CEO at Synctera. „Expanding Mastercard’s Engage program is a catalyst for better FinTech creation and adoption that will help people get better access to better financial services. We’re proud to work alongside Mastercard to change the way America banks, invests, and spends money.”
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
