The future is here: New study from Mastercard reveals majority of consumers are embracing open banking to fuel their digital financial experiences
PURCHASE, NY – (COMMERCIAL THREAD) – Mastercard released a new report today, The rise of open banking, demonstrating the widespread adoption of technology to power smarter, more meaningful digital experiences. Open banking puts consumers at the center of where and how their data is used to more effectively deliver the services they want and need. Fintech companies and banks are using this consumer-authorized data to provide easier and more inclusive access to credit, personal money management, digital wallets, and payment services.
Open banking is already integrated into several areas of our daily life, including personal financial management tools, financial account linking and account opening. Nine in ten consumers in the United States and Canada use online and mobile financial apps to manage their money, according to the report, with bill paying (82%) and banking (80%) being the use cases. The most common.
“Open banking gives consumers choice by allowing them to use their own data to obtain financial services solutions quickly, easily and securely,” said Chiro Aikat, executive vice president, products and engineering, North America. North. “Mastercard plays a central role in this ecosystem as a trusted intermediary and secure data network that enables smarter, more meaningful experiences and enables consumers to adopt healthy financial habits that improve their everyday lives. ”
Accelerated digital switchover
The survey found that over the past year, consumers have increasingly performed everyday transactions digitally, including:
Send money to friends, family and businesses, with 59% of consumers using digital apps, products and / or services to do so and 36% in the US using this technology for the first time Last year
Secure or refinance a loan (28% of consumers)
Emerging use cases like buying or selling cryptocurrency and crowdfunding
Open banking is the foundation of many of these applications, where financial technology companies, banks, and financial institutions connect financial data securely and transparently to enable a wide range of financial products and services.
Willingness to connect financial accounts
The ability for consumers to securely link their bank or payment accounts and authorize the use of their financial data in online financial applications is critical to conducting many, if not all, of these transactions. The report found that:
74% of consumers in the United States (65% of Canadians) have considered or would consider connecting their bank accounts to financial apps and services to automate financial tasks
68% in the United States (69% of Canadians) would do so to easily send money to someone
Consumers are already connecting their data through multiple platforms to manage their finances, making their data work harder for them. Among those interviewed:
59% of US respondents (55% of Canadians) feel very comfortable using technology to manage their money
Convenience is a major driver of fintech use, with 59% of consumers in Canada and the United States saying fintech saves them time and requires less work.
Placing consumers at the center of how and where their financial data is used ensures greater transparency and in turn helps fintech companies, banks and financial institutions to gather feedback, scale faster. and create new financial products and services more efficiently. Mastercard is a trusted partner and offers the highest levels of security and protection in every interaction and data transfer, adhering to its own data protection principles and standards: consumers own the data they produce every day – and have the right to understand and control how it is shared and used.
To learn more about the Rise of open banking, download the report here.
Methodology of the report:
To better understand the short- and long-term implications of open banking technology on financial services and the consumer experience, The Harris Poll on behalf of Mastercard conducted a quantitative online survey in the United States and Canada of 4,000 respondents aged 18 and over. All participants were selected for credit card use with a readable sample by gender, generation, wealth, ethnicity, fintech openness and adoption, card possession, major banking relationships, region, etc. The fieldwork was carried out from May 26 to June 15, 2021.
About Mastercard (NYSE: MA)
Mastercard is a global technology company in the payments industry. Our mission is to connect and power an inclusive digital economy that benefits everyone, everywhere by making transactions safe, simple, smart and accessible. Using secure data and networks, partnerships and passion, our innovations and solutions help individuals, financial institutions, governments and businesses realize their greatest potential. Our decency quotient, or DQ, drives our culture and everything we do inside and outside of our business. With connections in more than 210 countries and territories, we are building a sustainable world that opens up invaluable possibilities for all.