The Future Is Here: New Mastercard Study Finds Majority of Consumers Embrace Open Banking to Power Digital Financial Experiences
December 14 2021 - 8:00AM
Business Wire
Report finds more than 80% of consumers in the
U.S. – and 90% of younger consumers – are already connecting their
bank accounts to technology apps
Mastercard released a new report today, The Rise of Open
Banking, demonstrating the mainstream 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 provide the services they want and need. Fintech
companies and banks use this consumer-permissioned data to provide
easier and more inclusive access to credit, personal financial
management, digital wallets and payments services.
Open banking is already embedded in several areas of our daily
lives, including personal financial management tools, linking of
financial accounts and account opening. According to the report,
nine in 10 consumers in the U.S. and Canada use online and mobile
financial applications to manage money, with paying bills (82%) and
banking (80%) as the most popular use cases.
“Open banking gives consumers choice by enabling them to use
their own data to obtain financial services solutions quickly,
simply and securely,” said Chiro Aikat, Executive Vice President,
Product & Engineering, North America. “Mastercard plays a
central role in this ecosystem as a trusted intermediary and secure
data network that powers smarter, more meaningful experiences and
empowers consumers to practice good financial habits that enhance
their day-to-day lives.”
Accelerated Shift to Digital
The survey uncovered that over the past year consumers have
increasingly conducted common transactions digitally including:
- Sending money to friends, family and businesses, with 59% of
consumers using digital apps, products and/or services to do so and
36% in the U.S. using this technology for the first time in the
last year
- Securing or refinancing a loan (28% of consumers)
- Emerging use cases like buying or selling cryptocurrency and
crowdfunding
Open banking is at the foundation of many of these applications,
where fintech companies, banks and financial institutions are
connecting financial data securely and seamlessly to enable a wide
range of financial products and services.
Willingness to Connect Financial Accounts
Critical to driving many, if not all, of these transactions is
the ability for consumers to securely link their bank or payment
accounts and authorize their financial data to be used in online
financial applications. The report found that:
- 74% of consumers in the U.S. (65% of Canadians) have, or would,
consider connecting their bank accounts to financial apps and
services to automate financial tasks
- 68% in the U.S. (69% of Canadians) would do so to easily send
money to someone
Trust in Fintech
Consumers are already connecting their data via multiple
platforms to manage finances, and thus make their data work harder
for them. Of those surveyed:
- 59% of US respondents (55% of Canadians) feel very confident
using technology to manage money
- Convenience is a top driver for using financial technology,
with 59% of consumers in Canada and the U.S. saying fintech saves
them time and is less work.
Putting 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 gather feedback, scale
faster and create new financial products and services more
efficiently. Mastercard is a trusted partner and provides 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 read more about the Rise of Open Banking, download the report
here.
Report Methodology:
To better understand the near- and longer-term implications of
open banking technology on financial services and the consumer
experience, The Harris Poll on behalf of Mastercard conducted an
online quantitative survey in the U.S. and Canada among 4,000
respondents aged 18 and older. All participants were screened for
credit card use with readable sample by gender, generation,
affluence, ethnicity, fintech openness and adoption, card
ownership, major bank relationships, region, etc. Fieldwork was
conducted 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
company. With connections across more than 210 countries and
territories, we are building a sustainable world that unlocks
priceless possibilities for all.
www.mastercard.com
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Media Contact: DeAnn Zebelean, Director – Communications
deann.zebelean@finicity.com
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