Mastercard Sets to Acquire Finicity for USD 825 Million

Mastercard Sets to Acquire Finicity for USD 825 Million

By CFO Tech Outlook | Tuesday, July 07, 2020

Open banking offers people and businesses more control over their financial data, including determining how and where third parties such as fintechs or other banks can access information to provide new services like money management programs or initiate payments on their behalf

Fremont, CA: Mastercard entered into an agreement to acquire leading North American provider of real-time access to financial data and insights, Finicity, for a sum of USD 825 million, with an option for Finicity's existing shareholders for an earn-out of up to an additional USD 160 million, if the performance targets are met. The addition of Finicity's complementary technology and teams will strengthen the existing Mastercard open banking platform to enable and safeguard a more excellent choice of financial services, reinforcing the company's long-standing partnerships with and commitment to financial institutions and fintechs across the globe.

“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," said Michael Miebach, president of Mastercard. “Finicity has a proven Top 10 FinTech Consulting/Services Companies - 2019business, 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."

Open banking offers people and businesses more control over their financial data, including determining how and where third parties such as fintechs or other banks can access information to provide new services like money management programs or initiate payments on their behalf. For several years, Mastercard has been a regular investor in this sector, including the 2019 launch of a set of comprehensive open banking solutions in Europe. These efforts, combined with Finicity's technology powering platforms such as Quicken Loans Rocket Mortgage and Experian Boost, have the potential to shape the next generation of open banking services.

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

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