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Mastercard expands Finicity analytics offerings for small business clients

Mastercard is making more analytics available to its small-business clients through one of its subsidiaries.

Jess Turner headshot
Jess Turner

The credit giant, via Finicity, is adding advanced analytics in the U.S. to further help lenders manage their risk profiles while adding expanded credit models for small business loans and credit-card lines.

Finicity provides an open banking platform to customers for safe, secure access to fast, high-quality data.

“Small businesses are increasingly looking for greater choice in how they borrow, pay, and manage their finances,” Jess Turner, Mastercard’s executive vice president for global open banking and API, said in a media release.

“Open banking provides lenders the owner-permission data and advanced analytics they need to offer more choice in financial services to small businesses, which are the backbone of the American economy.”

Partnering with fintechs 1-800Accountant, Amount, Codat, GenEQTY, Lendio, Nav, Rho, and upSWOT, Mastercard open banking looks to expand customer choices in financial experiences in lending and credit decisioning, secure account opening, account-based payments and business financial management.

Credit score report
Credit report

Clients seek better access to funding

According to a Mastercard report on open banking and small business, 85 percent of small-business owners are searching for faster, easier access to capital.

That comes in the wake of year-over-year declines in traditional funding for small-business applicants, which according to Federal Reserve bank’s 2022 Small Business Credit Survey, fell from 51 percent in 2019 to 36 percent in 2020 and 30 percent in 2021.

Mastercard acquired Utah-based Finicity in November 2020 for $825 million to expand choices for its customers.

Open banking is a secure method of sharing financial data with other financial service firms. Traditionally, only a customer and their bank could access their financial data. Open banking allows consumers to share that data with a third-party financial service provider, including fintechs, currency exchanges, and merchants.

  • Craig Ellingson

    Craig is a freelance writer and editor. He has toiled in various positions for various newspapers in Western Canada, including the Edmonton Journal and the Calgary Herald.

    When he’s not busy fixing his home, you can find him experimenting with his slow cooker, finding the right grind (and coffee bean) for his AeroPress, reading fiction and non-fiction, mulling over director Ingmar Bergman’s works, and practicing his backward crossovers (both sides!) while ice skating.