FIs Must Connect the Dots on Open Banking for Consumers: Mambu

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Open banking: It’s a process that allows fintechs to access bank customer or credit union member data through a financial institution’s open application programming interface (API), and build consumer-facing products and tools around it, theoretically resulting in a more streamlined approach to personal financial management.

But while most consumers are in favor of the byproducts of open banking – having all their financial information aggregated in one place, using budgeting apps and receiving fast, secure payments, to name a few – a majority also said they’re either not on board with open banking or don’t understand what the term means, a new report from banking and financial services platform provider Mambu said. That means financial institutions are doing a poor job of explaining what open banking is and touting its benefits, according to the report, which was based on a survey of 2,000 global consumers conducted in March 2021 and is the first in a new Mambu research series called “Disruption Diaries.”