Mastercard to buy Finicity to improve open banking services
Mastercard has agreed to acquire Finicity for a reported price of $825 million, a move the card brand says will strengthen its open banking platform and expand financial services through more real-time access to data.
Finicity's financial data technology currently powers platforms for Quicken Loans Rocket Mortgage, Experian Boost and others throughout North America.
The addition of Finicity's technology to existing Mastercard open banking solutions will help Mastercard advance its partnerships with fintechs and financial institutions, expand service offerings to businesses and consumers and further the company's secure data practices.
“Open banking is a growing global trend and a strategically important space for us," Michael Miebach, president of Mastercard, said in a press release Tuesday. "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.”
The use of next-generation open banking APIs and clear consumer approvals using the financial information Finicity can deliver streamlined loan and mortgage processes, rapid account-based payment initiation and personal financial management solutions, Miebach added.
The acquisition continues a trend for Mastercard in the open banking sphere, as it launched various solutions in Europe last year.
“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," Steve Smith, CEO and co-founder of Salt Lake City-based Finicity, said in the release. "This partnership with Mastercard helps us accelerate this mission globally.”
Mastercard expects the deal to close by the end of the year.