Mastercard to acquire Finicity for $825 million to advance open banking strategy
MasterCard announced it will acquire Murray, Utah-based Finicity for $825 million to advance its open banking strategy. Finicity’s existing shareholders have the potential for an earn-out of up to an additional $160 million if performance targets are met.
Founded in 1999 and launched in 2000, Finicity provides financial data APIs, credit decisioning tools, and financial wellness solutions. Its technology powers platforms such as Quicken Loans Rocket Mortgage and Experian Boost.
“Since our founding, Nick Thomas and I have focused on developing industry-leading technology and building an organization that empowers consumers and organizations to better understand, manage and use their financial data to improve their financial lives. Enabling people to access and control their data, while ensuring best practices to protect that data, will continue to drive tremendous innovation that increases financial literacy, inclusion, and health. This partnership with Mastercard helps us accelerate this mission globally.” – Steve Smith, chief executive officer and co-founder of Finicity.
“Open banking is a growing global trend and a strategically important space for us. With the addition of Finicity, we expect to not only advance our open banking strategy, but enhance how we support and accelerate today’s digital economy across several markets. Finicity has a proven business, built on partnerships with thousands of banks and fintechs, similar to us. Finicity also shares our commitment to consumer-centric data practices, ensuring consumers have a say in how and where their information should be used. It’s through the use of next generation open banking APIs and clear consumer approvals that this financial information can deliver streamlined loan and mortgage processes, rapid account-based payment initiation and personal financial management solutions.” – Michael Miebach, president of Mastercard.
“Finicity has been a strong partner of Rocket Mortgage during the mortgage industry’s tech revolution. Fast, easy access to consumer-permissioned data is critical to lenders who are making well-informed mortgage real time decisions. We are happy for the Finicity team in joining Mastercard and look forward to a continued partnership.” – Scott Elkins, senior vice president of Investments at Rocket Mortgage.
|Location||Murray, UT||San Francisco, CA|