The Future Is Here: New Mastercard Study Finds Majority of Consumers Embrace Open Banking to Power Digital Financial Experiences – Yahoo Finance

December 15, 2021 by No Comments

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

PURCHASE, N.Y., December 14, 2021–(BUSINESS WIRE)–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:

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