Mastercard has boosted its open banking programme, making it easier for Americans to secure loans by streamlining income and employment verification processes.
Applying for a loan often includes manual income and employment verification processes that require people to gather paystubs and tax documents and financial institutions to expend their resources verifying them.
As a result, says Mastercard, people are more likely to abandon the process completely, and those without steady income streams, including members of the gig economy, face additional challenges in disclosing their payment history.
To tackle this, the payments giant is working with payroll data aggregator Argyle to enable financial institutions to digitally verify an applicant’s income and employment via credentialed payroll.
Through a single integration to Mastercard’s Open Banking platform, lenders have the flexibility to verify income and employment data through connected bank accounts or via payroll systems with the applicant’s permission.
Additionally, Mastercard’s cash flow analytics and balance analytics technology enable lenders to use - with an applicant’s permission - their bank account data to holistically view their financial health during the decisioning process. The tech helps indicate creditworthiness by analysing cashflow trends as well as account balances.
Jess Turner, EVP, global head, open banking and API, Mastercard, says: "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."