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.
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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:
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