Mastercard Debuts New Open Banking-powered Tools

Mastercard has recently introduced a suite of open banking-powered tools designed to give consumers greater control over their financial data.

Mastercard has introduced Connect Plus, a data-consent command center that allows consumers to manage where, how, and with whom their financial data is shared.

With Connect Plus, customers will get Enhanced Identity and Device Intelligence as it has features that help ensure secure and seamless sharing of financial data with third parties.

Connect Plus will deliver a streamlined and secure platform for individuals to manage their data shared through Mastercard’s Open Banking network. Offering a 360-degree view of the third parties a consumer has granted data access to and the tools to manage the access, Connect Plus empowers individuals to take charge of their financial lives, safely and with ease.

And to ensure the consumer is kept in the loop at all times, Connect Plus will notify users when a third-party’s permission to access account data is expiring or needs additional attention.

The Mastercard Account Owner Verification solution, along with a library of APIs for open banking and beyond are available now at Mastercard Developers.

Open banking can drive innovation by enabling the development of new financial products and services that leverage consumer-permissioned data.

Consumers can use a secure, easy-to-use digital web application to search for and link their bank accounts, view which third parties have access to their data, and manage permissions.

Mastercard is piloting Connect Plus this year and expects to expand to full availability in the U.S. in 2025.

Mastercard has been actively working on expanding its open banking-powered tools globally. While the initial launch is focused on the U.S., the company has expressed its commitment to bringing these solutions to other markets as well. The timeline for the global rollout will depend on various factors, including regulatory approvals and partnerships with local financial institutions.

Open banking enables consumers to access valuable financial experiences, such as easier ways to pay recurring bills, build credit, and secure loans.

This initiative aims to make financial data sharing more secure and convenient for consumers, empowering them to take control of their personal information.

Mastercard's new open banking-powered tools are likely to have several significant impacts on the credit card industry.

By providing consumers with greater control over their financial data, these tools can help reduce the risk of data breaches and fraud. This increased security can build consumer trust in digital financial services.

Open banking allows for seamless integration of financial services, making it easier for consumers to manage their finances, pay bills, and access credit.

With easier access to financial data, fintech companies and other non-bank entities can offer more competitive products and services, potentially challenging traditional credit card issuers.

Open Banking Software App OneStack Secures $2 Mn Funding by growX Ventures and Stride Ventures

OneStack raises USD 2Mn from growX ventures, Stride Ventures, 9Unicorns, Venture Catalyst, Mr. Sunil Kulkarni along with other existing investors

OneStack plans to digitize over 1,000 cooperative banks and credit societies this year, marking a significant milestone in its mission to empower these financial institutions

OneStack, a leading technology company focused on empowering cooperative banks and credit societies in India, today announced that it has raised $2 million in its latest funding round. This investment will power the company's growth, drive team expansion, foster innovation, and establish nationwide offices, propelling it to unparalleled success.

With this new funding, OneStack plans to digitize over 1,000 cooperative banks and credit societies this year, marking a significant milestone in its mission to empower these financial institutions. The funding round attracted a diverse group of investors, including growX, Stride, 9Unicorns, Venture Catalyst, Mr. Sunil Kulkarni, and existing investors.

"We are thrilled to have the support of our investors as we embark on this exciting phase of growth," said Amit Kapoor, Founder and CEO of OneStack. "This infusion of funds does more than merely enable us to augment our product suite and broaden our footprint across India; it propels our growth journey at an accelerated pace. With these additional resources, we are on the cusp of a revolution, empowering cooperative banks and credit societies to stand their ground in this digital epoch. Our mission extends beyond transformation and growth – we are dedicated to financial inclusion, bridging the gap for the next 40 crore Bharat customers. We are set to transform the banking landscape, revolutionizing customer service and fuelling unprecedented growth.”

OneStack is launching OneCBS (Core Banking Solution), which will further revolutionize the cooperative banking landscape. OneCBS is a cloud-based platform with integrated mobile applications and switch connectivities. This innovative solution enables banks and societies to streamline their operations, enhance customer experiences, and make data-driven decisions.

"OneStack is the vanguard in the cooperative banking sector, smashing through the digital divide and equipping banks and societies to fulfill the needs of today's digital-native customers," stated Manu Rikhye, Partner at growX. "Their trailblazing solutions will not only retain existing customers but also attract new ones, driving financial inclusion and growth."

Furthermore, OneStack is introducing SoundBox, a branded merchant ecosystem solution for cooperative banks and credit societies. By offering their own SoundBox, these institutions can provide seamless digital payment services to their merchants, competing with leading fintech players in India.

"We are excited to partner with OneStack. They are focused on catering to the banks of Bharat and enriching the digital financial journeys of last-mile customers. With their innovative white-labelled app, OneStack is empowering cooperative banks to provide a personalized digital banking experience to their customers. They have emerged as the catalysts, bridging the divide for the underserved segment by opening the gates to essential digital banking services and contributing both to the Digital Bharat initiative and the Government's financial inclusion goals," added Mr Ishpreet Singh Gandhi, Founder & Managing Partner, Stride Ventures.

The addressable market for OneStack's services is vast, with over 1,200 urban cooperative banks, 8.5 lakh societies, and more than 380 million Indians banking with cooperative banks and societies. These financial institutions hold approximately INR 20 lakh crore in deposits. However, many of them lack the necessary infrastructure and technology to cater to the evolving needs of their customers.

OneStack's Mobile Application has become a game-changer in the cooperative banking sector, with a remarkable track record of activating over 200+ banks and societies. The integration of OneStack's services into a bank's existing systems is a seamless process, taking only two weeks, including testing. OneStack provides comprehensive technical support and training to ensure a smooth transition and continued success.

OneStack’s objective is to make every Bharat Bank a Neo bank, OneStack aspires to be the TSP (Technical Service Provider) for cooperative sector providing Core Banking Solution (OneCBS), Mobile Banking Application, UPI/QR Services & Soundbox.

Onestack will digitize the cooperative sector with new age technology, which will enable the banks to engage & retain their customers & grow their CASA (Current Accounts & Savings Account). The customers of these banks will now be able to access to the full range of needs-based financial services – savings, credit, insurance, payments – and over all solve the financial inclusion objective of Bharat.

SBM Bank India & PayNearby Sign Up to Offer 'Open Banking' to the Masses

SBM Bank (India) - the first bank to receive banking licence in India through wholly owned subsidiary route, today announced a tie up with PayNearby, India’s largest hyperlocal fintech start up. Both firms signed a Memorandum of Understanding to build an “open banking” network towards delivering basic banking solutions as well as advanced financial services, to their customers. 

The partnership would enable the Bank to offer complete suite of digital and assisted banking solutions through PayNearby’s exhaustive network of micro-enterprise and retail touchpoints. Besides a win-win for the partners; the alliance will not only empower the underbanked and unbanked segments; but also enable the micro-enterprise and retail touchpoints to earn better returns on their investments. The deployment of the banking module will be done in a phased manner and will work seamlessly with the existing platforms at PayNearby outlets and touchpoints. 

Both companies are focused to build open modular architecture-led platforms, that can support plug and play APIs, ensuring highly customized environments which can expand using respective partnership approach.

Commenting on the partnership, Sidharth Rath, MD & CEO, SBM Bank (India), said, “At SBM Bank, banking has become an on-demand experience for the new age customers. Branch locations, banking hours or normal waiting time – these concepts are fast eroding. We, being a new bank, have set sights on offering a seamless experience, comprising of taking the bank to where customers prefer to be. Our partnership with Nearby Technologies is built on a commitment to facilitate financial empowerment among underbanked and unbanked segments – through the wide network comprising of the MSMEs and retail outlets. Together, we will not only make secured, digital and assisted banking accessible to these entities but also add value in their economic growth. These entities are the backbone of the Indian economy and reaching them directly with the value drivers will trigger a visible positive impact and reduce inefficiency in their economic chain.”   

PayNearby is the largest agent banking platform from Nearby Technologies – built to educate, engage and push wide range of fintech services, including basic banking facilities like account opening to more advance options like the latest ecommerce experience, the latest payment technology, including UPI, P2P payments and many more. The technology platform connects consumers via local retailers and micro enterprises, to the solution providers – thereby not only expanding their offerings, but also improving their financial viability and reach. The network of PayNearby retailers, spans across 16,700+ PIN codes in the country.

Commenting on this, Anand Kumar Bajaj, MD & CEO, PayNearby remarked, “We will have more than 20 lakh new age retail partners on ground, who will be sourced in a phased manner. They will be the first touch point to onboard customers and serve as the founding stone for the neo-banking initiative. The multi-modular, scalable architecture will allow us to easily plug and play different partner APIs and create an ecosystem where in addition to banking facilities, we are also able to offer value added services based on consumer interest. From 9 Crore customers to 50 Crore beneficiaries, we believe through our distribution strength and the banking solutions from SBM Bank, we can together realize the dream of bridging the digital gap and making essential services available for all.

"PayNearby will transition India from assisted service to self-service nation by upgrading and reskilling our partners. We are geared to actualize this goal through our trained, tooled and tested retail partners on ground. The measure of success comes from enabling customers with what they want at a time, place or mode of their choice,” said Bajaj. 

In a research conducted by Nearby Technologies, it has been observed that consumers of all genres have shown their preference for simple to use banking interfaces and are willing to adapt to new technology and services if presented accordingly. Upgrading cash into digital currency will bring about large-scale adoption of commercial digital products in this country. 

Adding his views, Neeraj Sinha, Head, Consumer & Retail Banking, SBM Bank (India)  said, “We believe a new age banking experience is built on empowering and partnering with best-in-class players who can help us solve key challenges, in our pursuit to take a superior banking experience across key markets. We are elated to partner with Nearby Technologies – a new age fintech company and together, we shall take a superior and customized banking experience to the people who need it the most.”

PayNearby, powered by SBM Bank (India) will offer all the banking solutions - ranging from account opening, banking transactions, final product sales, AEPS. Also, all payment transactions and relationship management can be executed at the outlets using the digital app or through assisted banking feature.