Mastercard has partnered with Argyle to advance its Open Banking for Lending initiative and enhance consumers’ control over their financial information. The updated features aim to offer income and employment verification to approximately 95% of the US workforce who receive payments via direct deposit.

Furthermore, this enhancement seeks to improve the accuracy of lending decisions and integrate more individuals into the digital economy. According to the official press release, the process of securing a loan can be daunting, particularly for the 19% of individuals who do not have traditional credit histories, making it challenging to obtain credit cards or rental agreements. Digital solutions may provide a solution, as a recent survey by Mastercard indicated that 90% of consumers lacking sufficient credit history are willing to grant secure digital access to their financial accounts in order to obtain a loan.

Mastercard is enhancing its Verification of Income and Employment solution to include credentialed payroll data through its partnership with Argyle. This allows financial institutions to verify income and employment information digitally via a single integration with Mastercard’s Open Banking platform. Specifically, tenders can now access verification data through connected bank accounts or payroll systems with the applicant's consent, streamlining the process and reducing the need for manual document collection.

Officials from Argyle noted that the digital verification of income and employment through Mastercard’s platform will support more efficient and accurate lending experiences. They also highlighted the benefits of this technology in balancing trust and innovation while facilitating smoother lending processes. Improving access to credit Open Banking enables more inclusive lending by leveraging detailed consumer-permissioned data, including income and employment verification, as well as cash flow and asset analysis.

This approach not only simplifies the lending experience but also expands opportunities for individuals with limited or non-existent credit histories. Mastercard officials emphasised the importance of personalised and accessible digital experiences in lending. They stressed that Mastercard’s lending solutions are designed to enhance decision-making and broaden access to financial services.

Mastercard’s Cash Flow Analytics and Balance Analytics solutions also contribute to this effort. With the applicant's permission, these tools allow lenders to assess financial health by analysing trends in cash flow and account balances. These insights create additional pathways for securing credit.

For small business owners, these analytics can also be applied through Mastercard’s APIs to improve their financial experiences. .