Expanding the possibilities of open banking, one startup at a timeDecember 9, 2022 | By Blake Rosenthal and Jess Turner
From embedded cross-border payments and personalized financial experiences to scoring engines and beyond, eight startups look to scale innovations that enable more consumer choice.
Buying groceries with a digital wallet, paying bills instantly via an app, even paying your rent without reaching for your checkbook – all of this is possible because of open banking. Open banking gives consumers a permissioned way to share their data safely and seamlessly. The new open banking environment is creating a rising tide of data that has the potential to lift all boats – if the industry can come together to create and innovate responsibly for consumers and small businesses. For consumers, open banking is already opening up a whole world of digital opportunities, from making payments to getting access to credit. Small businesses can use open banking to help manage their finances, gain access to capital and run operations more efficiently.
And open banking is growing fast. From 2021 to 2026, the number of open banking users is expected to increase nearly eightfold, according to Juniper Research. Supporting that growth is an expanding universe of fintechs that are building new tools to help banks, businesses and consumers benefit from open banking. All that innovation is creating a new engine for global expansion, helping financial companies grow their businesses and helping extend critical banking and other services to more people around the world. Mastercard has been there from the beginning, helping this ecosystem grow.
Earlier this year, Mastercard launched the Start Path Open Banking program to engage open banking startups on their path to scale, uncover unique opportunities to co-innovate and power experiences that enable consumer choice. Through the program, startups get access to a combination of hands-on mentoring, co-innovation opportunities and engagement with Mastercard’s global network of banks, merchants, partners and digital players to help scale their business.
Through the relationships and mentorship opportunities afforded to these companies through Start Path, the inaugural class of open banking startups is already making a greater impact by helping financial institutions and technology providers build next-generation open banking products. Today, these startups are working to deliver embedded finance at scale through Mastercard’s global network of distribution, product and service providers, expanding access to credit and loans, gaining industry credibility, strengthening trust with consumers and businesses, and much more.
Mastercard has now selected the following eight open banking startups to join the growing Start Path Open Banking program:
These open banking companies will join the more than 350 startups that have participated in the award-winning global startup engagement program since 2014. Around the world, Start Path alumni are growing valuations, going public and inking major commercial engagements with Mastercard and its customers.
Innovations coming out of the Start Path Open Banking program will help propel open banking into new areas of banking and finance, creating invaluable opportunities for traditional financial institutions, technology providers and small businesses. But the biggest beneficiaries will be consumers. Open banking will make financial services more valuable and easier to access for consumers – including those with limited access to banking and other financial products today. Mastercard Start Path Open Banking companies will play a key role in building this more rewarding and inclusive open banking world.
Interested startups can apply to the Mastercard Start Path Open Banking program here.
Blake Rosenthal is Mastercard's executive vice president of Segment & Fintech Solutions; Jess Turner is Mastercard's executive vice president of Global Open Banking & API.
Media contact: Jen Langione, Mastercard Global Communications, (917) 408-2941, firstname.lastname@example.org