Equifax taps Mastercard Open Finance to give lenders more consumer-permissioned insights

This partnership between Equifax and Mastercard is a win for retailers who struggle with 'thin-file' customers. By integrating Mastercard’s open banking data, Equifax is making it easier for lenders to see a customer’s real-time financial health beyond just a traditional credit score. For your business, this means more customers could be approved for financing by using their bank account history to prove their ability to pay. Instead of relying solely on a three-digit score that might be outdated, lenders can now access consumer-permissioned data like income, employment, and recurring bills directly from a shopper's bank. This reduces the friction of manual documentation, such as uploading pay stubs during a big-ticket purchase. It also helps lenders offer better terms to customers who are responsible but haven't built a long credit history. For operators, this technology facilitates a smoother checkout experience and higher conversion rates at the point of sale. As open finance becomes the standard, expect your lending partners to ask for fewer 'stips' (stipulations) and provide faster, automated approvals for a wider range of shoppers.

Source: Finextra — Lending

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