Mastercard released a new report today, The Rise of Open Banking, demonstrating the mainstream adoption of technology to power smarter, more meaningful digital experiences.

The report found more than 80% of consumers in the US – and 90% of younger consumers — are already connecting their bank accounts to technology apps.

According to the report, nine in 10 consumers in the US 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.

 

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,”

said Chiro Aikat, Mastercard Executive Vice President, Product & Engineering, North America.

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 US 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 authorise their financial data to be used in online financial applications.

The report found that:

– 74% of consumers in the US (65% of Canadians) have, or would, consider connecting their bank accounts to financial apps and services to automate financial tasks

– 68% in the US (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 US 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.

This article first appeared on Fintech News Switzerland.

Featured image: Mastercard