Mastercard, a leading global payment technology company, has recently announced its new Open Banking solution for account opening. The solution aims to simplify and streamline the process of opening a bank account for consumers and small businesses by leveraging the power of open banking.
Consumers and fintechs alike are experiencing new things thanks to advancements in finance and payments. By 2022, 78% of American adults will prefer to bank online or through a smartphone app.
By 2027, it is anticipated that the number of digital transactions will be close to $15 trillion as more people register accounts and handle their affairs online. With such expansion comes more sophisticated fraud, which affects both individuals and businesses. Examples include account takeover and synthetic identity fraud.
Why Open Banking Matters
Open banking refers to the use of open APIs (Application Programming Interfaces) that allow third-party developers to access financial data from banks and other financial institutions. This data can then be used to create new financial products and services that can benefit consumers and businesses.
The concept of open banking is gaining popularity as it provides customers with greater control over their financial data and allows them to share it securely with other companies. It also encourages competition in the financial services industry, as new players can enter the market and create innovative products that benefit consumers.
Mastercard’s Open Banking Solution for Account Opening
Mastercard’s new Open Banking solution for account opening is designed to simplify the process of opening a bank account. It allows customers to securely share their financial data with a new bank or financial institution, making it easier to open a new account.
The solution is built on Mastercard’s API platform and allows financial institutions to easily integrate the account opening process into their existing systems. Customers can initiate the process of opening a new account from within their current bank’s mobile app or website.
“At Mastercard, trust is our business. Our digital identity and open banking networks instill confidence on both sides of an interaction. By securing our online ecosystem, we are delivering on our promise to bring more people and businesses into the digital economy,” said Chris Reid, EVP, Identity Solutions, Mastercard.
Benefits of Mastercard’s Open Banking Solution
Mastercard’s Open Banking solution for account opening provides several benefits for both customers and financial institutions:
- Simplified account opening process: Customers can initiate the process of opening a new account with a few clicks from within their current bank’s mobile app or website.
- Improved customer experience: The solution provides a seamless and secure account opening experience, reducing the need for manual processes and paperwork.
- Increased security: The solution leverages the power of open banking to securely share financial data between financial institutions, reducing the risk of fraud and errors.
- Improved efficiency: Financial institutions can easily integrate the account opening process into their existing systems, reducing the need for manual processes and improving efficiency.
Mastercard’s new Open Banking solution for account opening is a step towards simplifying the banking experience for customers and businesses. By leveraging the power of open banking, Mastercard is providing a secure and efficient way for customers to open new accounts and access financial services.
As the concept of open banking continues to gain momentum, we can expect to see more innovative solutions from companies like Mastercard that leverage open APIs to create new financial products and services that benefit consumers and businesses alike.