Equifax Equips Lenders With Mastercard Open Finance Insights

This partnership between Equifax and Mastercard is a significant win for retailers who struggle to get customers approved through traditional credit checks. By integrating Mastercard’s Open Banking data, lenders can now look beyond a simple credit score. They can see a consumer’s actual cash flow, including income patterns and how they manage their daily balances over a two-year period. For your business, this means a likely increase in approval rates for 'thin-file' customers—those younger shoppers or immigrants who have money in the bank but haven't built a traditional credit history yet. Instead of a flat rejection based on a low FICO score, lenders can use this real-time data to verify that a customer can actually afford the monthly payments for a furniture set, auto repair, or medical procedure. The technology also automates the verification of assets and income. This speeds up the financing process at the point of sale, reducing the time your sales team spends waiting for a lender's decision. As a merchant, you should check if your current financing partners are adopting these 'Open Finance' tools, as it directly impacts your conversion rates and total sales volume.

Source: PYMNTS

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