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How open banking and AI foster new opportunities


As trends shift more digitally and game-changing technology disrupts the industry, we’re hearing more and more buzz about artificial intelligence (AI). But AI usage is not new to Mastercard. For decades, Mastercard has leveraged AI capabilities across a range of products and solutions, all with trust at the center of this innovation. Across multiple industries, we’re watching new technologies come to life, but what happens when you integrate the power of open banking with AI?  

We’re exploring how open banking and AI are accelerating new opportunities for businesses and consumers alike, creating a revolution for financial management.    

Better financial planning  

In a recent article in Forbes, Jess Turner, Executive Vice President, Global Open Banking and API at Mastercard, shares her expert opinion on how open banking and AI can lead to better financial planning:  

“Open banking is accelerating the evolution of customized financial planning. But it’s when we layer AI on top of open banking capabilities that I believe the revolution in financial management will really take hold.” 

“While personal financial management (PFM) tools have been around for a long time, the distinct, individualized experience comes from a combination of open banking and AI technology,” she writes in the article and continues: 

“By using open banking’s existing privacy and security frameworks, consumers will be able to control how these AI models use their data. With more data, AI can create more sophisticated models. So, in the future, people may regularly receive notifications from an app on their phone asking for their permission to feed the data they’re sharing into a regulated algorithm.”  

In that way, AI-powered financial assistants can enhance personal financial management, budget and investment recommendations. And even more impactful is the fact that AI is taking the fundamental concepts of consent and personalization to a whole new level – having a profound effect on the open banking ecosystem.  

Read the entire Forbes article here  

AI powered identity solutions  

But AI combined with open banking not only offers the opportunity for better financial planning, it also helps to protect consumers from fraud. Recently, we shared an announcement on how Mastercard transforms the fight against scams with latest AI tech 

By combining our identity, biometric, AI and open banking capabilities, Mastercard can help safeguard consumers across the spectrum of scams, from card-based and account-to-account payments to fraudulent account openings. 

Mastercard Identity assists in verifying that someone is who they say they are throughout the lifecycle of an account. This is critical for account opening because scammers open or take over accounts to fraudulently apply for credit, creating so-called “mule” bank accounts to receive stolen funds, or to impersonate someone using a false identity. 

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 Once the account is open and before a consumer initiates an account-based payment from their account – Mastercard Open Banking’s account owner verification solution retrieves account details in real-time and validates the rightful owner of the account, which draws on the safe exchange of consumer-permissioned data to facilitate frictionless onboarding experiences, faster direct debit setup and secure payments. 

And once that account-to-account or card-based payment is initiated, Mastercard’s behavioral biometrics can access physical interactions across devices to identify any unusual behavior, such as hesitating while typing or interacting with the website or app.  

For more open banking news and updates, follow us on our global Mastercard Open Banking LinkedIn page.  

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