Mastercard announced on Tuesday that the company is expanding its advisory services to help businesses and banks better understand the changing digital assets and financial landscape. The company is looking to hire 500 college graduates and young professionals to run the new programs.
According to the press releasethe company wants to help banks and merchants more easily adopt digital assets such as cryptocurrency and NFTs.
The new advisory areas will cover NFT and digital currency risk assessment, helping to create actionable strategies around the development of crypto credit cards and crypto loyalty programs.
“Mastercard has partnered with digital native companies that offer the best cryptocurrency solutions and has helped fintechs expand into new markets, working through go-to-market planning and go-to-market strategies. “, the company said in the statement.
The announcement comes as no surprise given Mastercard’s voice with its cryptocurrency support.
In his fourth quarter earnings call, Mastercard CEO Michael Miebach said the company will continue to support the cryptocurrency ecosystem in 2022. He also announced a partnership with Coinbase to enable the purchase of NFT without needing to buy Ethereum (ETH) first or needing to have a digital wallet. Mastercard customers will likely be able to do so when Coinbase launches its NFT marketplace, although no release date has been announced.
Open banking – when financial institutions and third-party financial service providers have shared access to customer financial data – is another growing area in the United States. Some cryptocurrency exchanges, including Coinbase, use open banking to simplify connecting a bank account to the exchange.
Mastercard seeks to help businesses use open banking well by applying its “data-driven insight, consulting and product development services” to help generate actionable strategies.
“This evolution of consulting is a recognition of the changing world and the evolution of our business. It’s about helping clients meet today’s challenges and anticipate the future,” said Raj Seshadri, president of Data & Services at Mastercard, in the press release.
Open banking could facilitate the transfer of accounts between banks, a better match between consumers and financial products, and better lending conditions based on more detailed reports on the financial situation of consumers. It could also mean better fraud monitoring for small businesses, thanks to a connected financial network.
However, it is not without risks. According to FICOthis could lead to greater exposure to data breaches and insider threats such as data screen scraping, among others.