Account Opening At The Speed Of Customer Expectations

What will payments look like in 2022 and beyond? In “The Way Payments Are Now Done,” Jess Turner, EVP, New Digital Infrastructure and Fintech, Mastercard, joins 32 other payment executives to discuss what payments’ “new normal” looks like. Turner explores how the pandemic has made mobile banking, account opening and real-time payments a necessity.

As we contend with in-person restrictions, the demand for and use of digital financial services has grown. Mobile banking, account opening or making real-time payments are now not only our first reflex, but often a necessity. Mastercard’s 2020 Global State of Pay study found that 73% of consumers and 67% of small businesses had used mobile banking apps to manage their finances and make payments in the past 12 months, and 53% of consumers said they were using them more now than they had before.

Consumers want flexibility in how they manage their finances, and true financial services innovators are delivering experiences that provide this choice. Opening checking accounts online is increasingly part of a consumer’s normal payments routine, and it is powered by open banking, which has also seen significant acceleration during COVID-19 and is expanding globally. Nearly two-thirds (64%) of the checking accounts opened during the height of the pandemic were submitted either online or on a mobile device with more than eight in 10 banking app users reporting the experience was “easier than they thought.” That’s largely due to open banking.

Digital account opening is here to stay, and consumers expect to open an account in seconds. But issues like manual uploads and micro-deposits add delays. Open banking introduces new ways for financial institutions and apps to verify account ownership and authenticate credentials for opening and funding accounts. The balance of risk, compliance and customer experience is delicate – efficiency can’t compromise fraud prevention. Trust is critical in our hyper-connected digital environment, and the consumer must be at the center of control, ensuring greater transparency.

That’s why we have a solution that provides secure, lightning-fast account verification. Mastercard’s open banking network is removing friction points in the account setup, onboarding and funding process. Open banking introduces new ways for FIs to verify account ownership and authenticate credentials for opening and funding that include account owners, account details, and balances that boost signups and reduce abandonment. The connectivity is also useful when customers have an existing relationship with an FI, but want to move money or add services. Data services help FIs verify account details and balances in milliseconds, while moving money accurately and securely.

With the rapid emergence and global expansion of open banking, the money experience will never be the same. At Mastercard, we are redesigning our network to power the future of payments and services. A global open banking network, coupled with our existing multi-rail expertise, empowers our partners to better serve consumers and their changing expectations with digital experiences.