The Financial Brand Insights - Fall 2022

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and fintechs to educate consumers on the value of open finance. The advantages are myriad, and it is up to financial institutions and fintechs to help their customers see how they can benefit from having a consolidated view of their finances. Why Should Banks Institute Open Finance? Ultimately, financial institutions must drive home the ways in which having a comprehensive view into their finances offers customers greater functionality. Among the benefits to communicate about open finance are that it: • Enables better customer experiences Open finance gives companies greater access to consumer financial data, enabling them to innovate and create more personalized products and services to meet customer needs. This means that companies — financial and otherwise — can build and offer consumers and businesses digital products that help them understand and manage their financial lives better. • Supports financial inclusion With the unique access that open finance gives into consumers’ financial lives, financial institutions can create tailored products and services built FOR underbanked groups by someone who understands them. It also enables greater insights beyond a credit score to make decisions on loans, mortgages and credit cards — ensuring those who are unbanked or underbanked can access financial services when they may otherwise have been denied. • Helps mitigate fraud and risk Greater insights into consumers’ financial lives also mean it’s easier to spot anomalies and potential fraud, reducing risk for both the organization and customer. • Drives smarter financial decisions Better visibility into their financial data allows consumers to make more informed financial decisions, while enabling financial providers to make better lending decisions. As a result, open finance is significantly positive for the economy

in the form of healthier lending, decreased default rates and smarter financial decisions. How Open Finance Resonates Across Different Demographics While many customers have yet to connect different accounts into a consolidated view of their financial picture, 44% of respondents have already done so. Not surprisingly, younger “digital native” customers are further ahead. Among Millennials (those born from 1981 to 1996), 59% of customers have used account aggregation tools. Among Gen Z (born from 1997 to 2012), the figure already stands at 60% and it can be expected to increase as the children who make up a large swath of Gen Z grow up and begin managing their own money. The data also show that minority groups are ahead of the curve. Customers who have already brought their accounts together into one view include: • 63% of Asian or Pacific Islander respondents • 62% of American Indian or Alaskan Native respondents • 61% of Hispanic, Latino or Spanish-speaking respondents • 56% of Black respondents • 40% of White respondents While those who have connected accounts total only 44% today, the survey found that more than half of respondents agree that being able to see all accounts in one place is important. Financial institutions and fintechs have a tremendous opportunity to pave the road to open finance by enabling seamless connectivity and data sharing between financial accounts. ▪ About MX: MX powers the open finance economy by unlocking the value of financial data with the most secure and reliable financial APIs. MX is enabling trusted access to financial data and making it actionable for intelligent decisions and personalized money experiences.

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In a recent survey*, 75% of bank customers said they’re attracted to the cost-effective, seamless services offered by your competitors. For 20 years, IFM has provided financial institutions the data-driven solutions they need to build stronger relationships and help their customers thrive. If you can’t give your customers what they want, they’ll find a competitor that can.

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THE FINANCIAL BRAND INSIGHTS FALL 2022

THE FINANCIAL BRAND INSIGHTS FALL 2022 THE FINANCIAL BRAND INSIGHTS FALL 2022

* Source: World Retail Banking Report 2022

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