Mastercard has enhanced its Open Banking Lending programme to streamline the process and increase inclusivity.
Mastercard is enhancing its Verification of Income and Employment solution by incorporating payroll data from Argyle. This expansion allows financial institutions to easily verify an applicant’s income and employment through a single integration with Mastercard’s Open Banking platform.
This means lenders will gain access to this information via connected bank accounts or payroll systems, streamlining the process and eliminating the need for manual data collection and review.
Brian Geary, Chief Operating Officer at Argyle, said: “We’re excited to make digital verification of income and employment widely available through Mastercard Open Banking, balancing our shared priorities of trust and innovation. These solutions empower all parties to take advantage of frictionless lending experiences and achieve faster and more accurate verification.”
The payments giant acknowledged that obtaining a loan can be difficult, especially for individuals who are not part of the traditional credit reporting system, making it even more challenging to secure a credit card or rent an apartment.
However, the company believes that digitisation will make a difference. The firm cites its recent survey, showing that 90% of consumers who do not have sufficient credit history to qualify for a loan are willing to grant secure digital access to their financial accounts to obtain one, to back its digitisation and Open Banking ambitions.
To further increase inclusivity, Mastercard’s Cash Flow and Balance Analytics tools, with applicant consent, let lenders access bank data to assess creditworthiness by analysing cash flow and balances. This approach helps individuals and small businesses secure loans and access credit more easily.
Jess Turner, Mastercard’s Global Head of Open Banking and API, commented: “A personalised and accessible digital experience is not just a nice-to-have, it is table stakes – and lending experiences are no exception.
“Our robust suite of lending solutions powers seamless decisioning to help more people benefit from the digital economy and take control of their financial futures.”
Open Banking’s usage has grown exponentially over recent years. Last month, Open Banking Ltd (OBL) announced that the number of regular users of the technology in the UK surpassed 10 million.
OBL noted that this milestone underscores the positive momentum of Open Banking technologies, with millions of consumers and small businesses taking advantage of financial management and payment tools.
