Report finds more than 77 per cent of
consumers in Canada – and 86 per
cent of Gen Z – are already connecting their bank accounts
to technology apps
TORONTO, Dec. 15, 2021 /CNW/ - Mastercard released a new
report, The Rise of Open Banking, demonstrating the
mainstream adoption of technology to power smarter, more meaningful
digital experiences. Open banking puts consumers at the centre 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,
over nine in 10 consumers (95 per cent) in Canada use online and mobile financial
applications to manage money, with paying bills (85 per cent) and
banking (84 per cent) as the most popular use cases.
"With the emergence of open banking, the way we as consumers and
businesses can connect with and control our data – for everything
from borrowing, investing, and budgeting – is being redefined,"
said Craig Reiff, Vice President,
Core Products and Open Banking at Mastercard in Canada. "Mastercard's open banking solutions
bring simplicity, efficiency, and security to the financial data
experience, while empowering consumers and small and mid-sized
businesses to receive more benefits from their data."
Accelerated Shift to Digital
The survey uncovered
that over the past year consumers in Canada have started conducting common
transactions digitally including for:
- Securing or refinancing a loan (31 per cent)
- Checking or improving their credit score (31 per cent)
- Emerging use cases like buying or selling cryptocurrency (54
per cent) and crowdfunding (35 per cent)
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:
- 65 per cent of consumers in Canada have, or would, consider connecting
their bank accounts to financial apps and services to automate
financial tasks
- 69 per cent of consumers in Canadian have, or would, consider
connecting their bank accounts to financial apps and services 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:
- 55 per cent of consumers in Canada feel very confident using technology to
manage money
- Convenience is a top driver for using financial technology,
with 62 per cent of consumers in Canada saying fintech saves them time and is
less work
Putting consumers at the centre 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 Canada and the U.S. 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
SOURCE Mastercard