Open Banking adoption hampered by consumer confusion, Mambu study

Tuesday 20 April 2021 11:14 CET | News

Banking and financial services platform Mambu has released a study of 2,000 global consumers, revealing that a significant misunderstanding of Open Banking is hampering its adoption, according to The Fintech Times

The Censuswide survey, commissioned by Mambu, found that more than half (52%) of consumers have never heard of Open Banking and 61% have never used it, in spite of 80% of respondents using one or more mobile finance apps. Open Banking has witnessed an increase in adoption globally as a result of the COVID-19 pandemic, and the research indicates a marked change in attitude and priorities as a result of the crisis. According to Mambu’s survey, 52% said they wanted more control over their finances. At the same time, 40% said the pandemic had changed their attitudes to privacy and 24% to data sharing. Another boost came from the 41% who said they have had more time for research. However, existing concerns remain with 48% of consumers claiming they are ‘scared’ to use Open Banking and 53% still believing that Open Banking is a dangerous use of data sharing. Looking at this further, almost half of the respondents claim that their banks did provide reassurance on the safety of Open Banking or provide information on what the numerous benefits are, with another 24% stating that, while it was explained, it could have been done in a better way.

Demonstrating the opportunity for Open Banking, the survey revealed that 57% said they would be more likely to use it if their bank had more successfully implemented and promoted it. When exploring further what consumers want from Open Banking, the survey shows that nearly half of respondents want instant digital money transfers; more than a third want aggregated bank balances at a glance; a third want tips on better money management and a quarter want money-saving suggestions for their bills.

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Keywords: Open Banking , study
Categories: Banking & Fintech | Online & Mobile Banking
Countries: World
This article is part of category

Banking & Fintech