The Financial Brand Insights - Fall 2022

understand their finances and make smarter financial decisions. Assembling a complete picture of consumer finances also allows financial institutions and fintechs to uncover new revenue streams and analyze consumer behaviors to deliver better experiences. However, the reality is most consumers are not yet taking advantage of the value a single view of their finances can deliver. A recent survey conducted by MX on trends in digital banking found that 50% of respondents say they have not used digital tools to bring different financial accounts into one view, such as a mobile app or online account.

By MX

How Open Banking Increases Data Value for Banks and Consumers

The promise of open finance — the ability to access and act on financial data — provides an incredible opportunity for both consumers and businesses. We live in an era when consumers expect effortless digital experiences across all their applications and devices, and open finance can help financial institutions deliver on those expectations. For financial institutions and fintechs, greater access to financial data enables them to innovate and create more personalized products and services to meet unique customer needs and expectations. For their customers, permission- based data sharing through open finance provides more control over their financial data, enabling them to choose who has access to this personal information. In this new ecosystem, financial data belongs to the customer, not the companies with which that customer does business . The message to the

Keep in Mind: Your customers may not

understand the benefits of open finance yet. But it's part of the experience they're craving.

When consumers are asked why they don’t aggregate their accounts into a comprehensive view, the challenges and opportunities come into sharper focus. Consumers either don’t yet see the value of account aggregation, or they don’t know how to create that single view. Consider these findings: • 28% say they don’t know how to connect their accounts in one place • 27% say they don’t care about seeing all their accounts in one place • 11% are concerned about sharing their user name and password with a third party • 10% cite concerns about sharing their financial information with a third party • 7% say their financial services provider has not offered the option to connect accounts These objections translate into opportunity and underscore the need for financial institutions

consumer is one of empowerment. Creating a Single View of the Customer

The ability to bring together financial accounts into a single view enables consumers to better

By using open banking to provide simple connectivity and data sharing between a consumer's bank accounts and the third-party apps they use, both the consumer and their financial institution will see a more complete data picture. That will enable greater personalization and an improved customer experience.

A Hard Pill to Swallow: Every financial institution wants to protect customer data, but consumers need — and deserve — access to their own financial data.

13

14

THE FINANCIAL BRAND INSIGHTS FALL 2022

THE FINANCIAL BRAND INSIGHTS FALL 2022

Powered by