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Mastercard Adds Advanced Analytics to its Open Banking Platform to Assist SMBs

Mastercard has improved the Open Banking platform delivered by its subsidiary in order to facilitate diverse and inclusive credit models for small business loans

Mastercard Adds Advanced Analytics to its Open Banking Platform to Assist SMBs

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Mastercard announced it added advanced analytics to the Open Banking platform delivered by its subsidiary, Finicity in the U.S. The new feature can help lenders manage their risk profiles while adding diverse and inclusive credit models for SMB loans, continuously monitoring and expanding credit card lines.

“Small businesses are increasingly looking for greater choice in how they borrow, pay and manage their finances. 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.”
Jess Turner, Mastercard’s Executive Vice President for Global Open Banking and API

When small business owners give permission to share their financial data via open banking, lenders can leverage Mastercard APIs to improve their lending decisions. Advanced payment history analytics helps extract valuable insights such as small business’ liquidity, revenue, balance, cash flow, and risk of loan repayment default.

That expands institutions’ choices in available financial experiences, lending & credit decisions, secure account opening, account-based payments and business financial management solutions.

According to Mastercard’s Rise of Open Banking Small Business Report, 85% of small business owners are looking for faster and easier access to capital. However, only 30% of small business applicants receive all the traditional funding they are seeking.

Mastercard acquired Finicity, a leading North American provider of real-time access to financial data and insights, in 2020. The company has provided financial data APIs, credit decisioning tools and financial wellness solutions. It played a key role in innovative solutions like Experian’s Boost and Rocket Mortgage by Quicken Loans.

Earlier this month, Mastercard and digital commerce company Network International jointly developed AI-based solution to combat fraud in financial transactions in the Middle East and Africa.

Nina Bobro

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Nina is passionate about financial technologies and environmental issues, reporting on the industry news and the most exciting projects that build their offerings around the intersection of fintech and sustainability.