Mastercard launches open banking API to tackle fraud and ease onboarding

A new solution promising ‘Open Banking for Account Opening’ has been introduced by Mastercard package customer identity verification with identity insights in a single API for easy onboarding and protection against fraud.

The API provides customer account ownership and digital identity verification in real-time, according to the announcement, helping banks and fintechs onboard customers to digital wallets, new bank or investment accounts, disbursements and account-based payments.

“At Mastercard, trust is our business. Our digital identity and open banking networks instill confidence on both sides of an interaction. By securing our online ecosystem, we are delivering on our promise to bring more people and businesses into the digital economy,” says Chris Reid, EVP of Identity Solutions, Mastercard.

Open Banking for Account Opening features checks against global data sources to generate risk scores. Mastercard utilizes behavioral biometrics from its subsidiary NuData Security for identity verification.

Mastercard subsidiary Finicity provides the open banking technology.

Fraud protection tools

Several biometrics providers are also launching technologies intended to complement their (or partner’s) core offerings with additional layers of security against fraud.

Nigeria-based Dojah is launching a transaction monitoring tool to extend fraud mitigation beyond customer onboarding.

The company’s new EasyDetect solution gather intelligence about suspicious behaviors, allows customers to set rules to block those detected automatically, and also detects unusual events beyond preset rules. Dojah says the software can help reduce time spent on manual reviews, and not only detect but prevent fraud, according to a company blog post.

Nethone AI fraud prevention technologies are being integrated with global payment orchestration platform FinMont to enable fraud prevention for payments within the travel industry.

FinMont was recently launched by German air carrier Hahn Air to streamline B2C and B2B payments. It will use Nethone’s profiles of each individual user, which utilize the company’s behavioral biometrics, to identify risky payment for fraud prevention without unnecessary friction.

“Our combined solution provides an exciting offer for the travel sector, which is focused on fighting fraud while helping to improve the overall service experience for merchants and their customers,” says Nethone CEO Hubert Rachwalski.

Dojah and Nethone each recently picked up ISO certifications to assure their customers of the safety of the biometrics and other data they hold.

Feedzai has launched a new version of its RiskOps Platform with machine learning models designed to identify financial fraud, under the name ‘ScamPrevent.’

The platform utilizes the behavioral biometrics Feedzai picked up when it acquired Revelock for early intervention, along with improved AI-based detection, custom scam rules and extended reporting.

Another partnership to fight fraud comes from Singaporean behavioral data analytics company Credolab and automated decision-making platform for banking and credit Taktile.

Credolab will become a behavioral data provider for Taktile’s newly launched Data Marketplace which allows its customers to access data on traditional credit, identity, fraud, accounting, open banking and alternative data from global data providers. The companies will provide bank-grade digital scorecards and data enrichment solutions, including anti-fraud insights, account takeover, and marketing segmentation.

Article Topics

Credolab  |  Dojah  |  Feedzai  |  fraud prevention  |  Mastercard  |  Nethone  |  onboarding  |  open banking