Mastercard Uses Network Data to Speed Credit Decisions

Mastercard unveiled Mastercard Credit Intelligence, a new suite of solutions that uses network signals and permissioned data to help lenders make faster credit decisions, according to a Wednesday (Dec. 3) press release.

The launch reflects a broader push in payments to package transaction-level insights into products that can help banks and FinTechs grow lending while reaching borrowers who do not fit neatly into traditional scoring models.

The suite combines Mastercard’s network and proprietary insights with advanced analytics to support “expanded and more transparent decision-making for lenders,” the release said. It is available in select markets. In the United States, initial activities will focus on small business solutions that use permissioned open finance data alongside Mastercard network insights.

Among the main selling points is speed. Mastercard Credit Intelligence is designed to reduce the time lenders spend analyzing applications and tailoring underwriting decisions, according to the release. The suite is designed to be used with other inputs, such as credit bureau history and telecom data.

“A healthy digital economy is an inclusive one, and … we can create new opportunities for consumers and small businesses who may have traditionally been overlooked,” Kaushik Gopal, executive vice president of business and market insights at Mastercard, said in the release.

Mastercard included in the release examples aimed at thin-file consumers and growing merchants. With an applicant’s permission, a bank could access network insights such as transaction types, spending categories and identity signals when reviewing a loan for a 25-year-old with limited credit history. For small businesses, lenders can obtain assessments that include historical transaction insights not typically found in traditional evaluations.

The company is building partnerships across the U.S., Philippines, United Arab Emirates, Australia and Brazil, including with Brazilian acquirer Stone to strengthen credit offerings for merchants. In the U.S., Mastercard’s open finance program can integrate permissioned financial information, including cash flow analytics and payment risk insights, to enhance small business underwriting, according to the release.

Mastercard Credit Intelligence solutions are available now through Mastercard Developers, along with documentation and tools intended to simplify API integration for partners, the release said.

PYMNTS coverage has followed Mastercard’s push to apply network data and software across the payments stack. That includes the Payment Optimization Platform aimed at improving merchant approval rates; the One Credential initiative that lets consumers route payments across debit, credit and installments; and partnerships to expand open banking payments and virtual card adoption in commercial payments.