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.
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.
For further information: Media Contact: Emilija Businskas, Vice President, Communications, Mastercard, [email protected]