Mastercard to acquire Finicity to advance open banking strategy

The combination of Mastercard's open banking solutions with the Finicity technology powering platforms such as Quicken Loans Rocket Mortgage and Experian Boost has the potential to shape the next generation of open banking services

Mastercard has entered into an agreement to acquire Finicity, a North American provider of real-time access to financial data and insights, for $825 million.

The addition of Finicity’s technology and teams will strengthen the existing Mastercard open banking platform, and open up North America as a new market.

Mastercard’s open banking solutions, launched in Europe in 2019, are designed to give consumers and businesses more control over their financial data, at a time when fintechs and banks are partnering to provide new services such as money management programmes or initiate payments.

The combination of these open banking solutions with the Finicity technology powering platforms such as Quicken Loans Rocket Mortgage and Experian Boost has the potential to shape the next generation of open banking services, according to Mastercard.

Michael Miebach, president of Mastercard, explained: “Open banking is a growing global trend and a strategically important space for us. With the addition of Finicity, we expect to not only advance our open banking strategy, but enhance how we support and accelerate today’s digital economy across several markets.”

He continued: “Finicity has a proven business, built on partnerships with thousands of banks and fintechs, similar to us. Finicity also shares our commitment to consumer-centric data practices, ensuring consumers have a say in how and where their information should be used. It’s through the use of next generation open banking APIs and clear consumer approvals that this financial information can deliver streamlined loan and mortgage processes, rapid account-based payment initiation and personal financial management solutions.”

Steve Smith, chief executive officer and co-founder of Finicity, said: “Since our founding, Nick Thomas and I have focused on developing industry-leading technology and building an organization that empowers consumers and organisations to better understand, manage and use their financial data to improve their financial lives.”

“Enabling people to access and control their data, while ensuring best practices to protect that data, will continue to drive tremendous innovation that increases financial literacy, inclusion and health.  This partnership with Mastercard helps us accelerate this mission globally.”

Image: Shutterstock

Mark Dugdale