Following this announcement, the new core benefits program will be available for select US-based debit and prepaid products, being developed in order to streamline and secure the overall account opening process.
The Open Banking for Account Opening program is expected to deliver clients a secure and efficient set of Open Banking products, as a core benefit to Mastercard consumers and small business debit issuers, as well as the consumer prepaid issuers in the region.
According to a study published by Insider Intelligence , Gen Z mobile banking adoption continues to develop and rise rapidly at 12.4% year over year, from 20.7 million in 2020 to a goal representing 47.8 million by 2026. In order to meet the trends and demands of the digital market, Mastercard will deliver US-based participating issuers free access to its Account Owner Verification, Account Detail Verification, and Account Balance Check tools. This will take place when the solutions are leveraged to support the digital account opening of a Mastercard branded consumer and small business debit, as well as a general-purpose reloadable client prepaid product.
The program was designed in order to improve the overall digital account opening process by verifying account ownership, reducing non-sufficient fund (NSF) returns, lowering account abandonment, as well as minimising the manual entry of payment credentials. At the same time, Mastercard Open Banking draws on the safe exchange of customer-permission information and data by using industry standards and machine learning (ML) to provide a secure and comprehensive digital account opening experience. The company will continue to prioritise meeting the needs, preferences, and demands of its clients, while also remaining compliant with the regulatory requirements and laws of the local industry.
In addition, Mastercard Open Banking is set to enable customers and collaborators to offer a completely modern account opening experience, while also using tools that span the entire institution. Through this launch, the company aims to strengthen the overall ecosystem for all participants, while also making relevant use cases in a more simple, secure, and accessible manner, via Open Banking.
Mastercard is expected to make the Open Banking for Account Opening program available during the first half of 2024.
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