Open banking and payments technology specialist FutureBank has been selected to participate in Mastercard Start Path’s New Networks programme. The company, which provides financial institutions with a platform that simplifies the integration between core banking and modern fintech, is one of eight companies joining the new Mastercard cohort announced on 6 February.
“This new opportunity will allow us to accelerate innovation, scale our solutions more effectively and help us play a role in shaping the future of digital banking and financial services alongside Mastercard,” said Sergio Barbosa, CEO of FutureBank.
Mastercard Start Path’s New Networks programme offers participating companies with resources, mentorship and access to Mastercard’s vast ecosystem to help support growth and innovation in the competitive fintech landscape.
Since it was founded in 2014, Start Path’s portfolio has grown to more than 450 start-ups from over 60 countries.
“As the fintech landscape continues to evolve at a rapid pace, Mastercard is embracing opportunities to support and collaborate with start-ups to build the future of innovation through the Start Path New Networks programme,” said Sabrina Tharani, senior vice president of global fintech programmes at Mastercard.
“Mastercard has selected FutureBank to join its ecosystem of innovators and will provide opportunities to access its network of partners, mentorship opportunities and resources to support their scaling journey.”
Democratising financial services
Mastercard carefully selected each start-up during a competitive application and vetting process for their innovative solutions that utilise open banking and open principles, as well as their strategic alignment with democratising financial services.
The New Networks programme within Mastercard Start Path is designed to support fintechs to scale and power experiences that enable consumer choice.
Symbiotic relationship
“We know that banks struggle to adopt new innovative product offerings without causing significant disruption to both the banking operations and the customer experience. We can solve these challenges for them,” explained Barbosa.
Legacy banks running core systems are facing growing challenges as the more agile neobanks snap at their heels.
Research from McKinsey found that operating costs for banks still running outdated cores averaged 10x higher than those with next-generation core systems. What’s more, the IDC warns that the cost of delaying migration is also growing, saying banks that fail to migrate to a future-ready platform can potentially miss out on a 42% increase in additional payments revenue and savings on legacy costs of up to 21% annually.
“FutureBank has always viewed the banking and payments technology landscape as unnecessarily complex. Banks and fintechs are often tied to core banking systems, keeping them from new product innovations and digital transformation,” said Barbosa.
“We believe banking and payments should be 100% plug-and-play. Collaborative partnerships, like those nurtured through the Mastercard ecosystem, takes us a step closer to a future where this is possible.”
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