U.S. Consumers Should Trust Their Financial Institution Before Sharing Their Bank Credentials
The data: More than a quarter of U.S. consumers surveyed said that when it comes to sharing their bank details with third parties, trust their financial institution to protect their financial assets is the most important factor, according to a PYMNTS.com poll conducted in conjunction with MX.
While confidence in their financial institution is the primary determining factor among U.S. consumers, respondents also highlighted several other key factors:
- 16.0% says that trust in the third party they were connecting to was the most important.
- 14.4% chose the belief that connections are secure as their first choice.
- 11.6% noted that transactions become much easier as accounts are connected as their main factor.
More on this: No matter what increases their convenience, American consumers are showing an interest in using open banking technology.
Among those surveyed who connected third-party applications to their bank accounts, 29.9% were very or extremely interested and 25.7% were somewhat interested in using an open banking portal offered by their personal bank. The level of interest has increased among certain groups, especially the younger generations or those who are already comfortable with sharing degrees.
- 47.1% and 37.2% of Millennials and Generation Z, respectively, were very or extremely interested.
- 59.8% consumers who are very or extremely comfortable sharing credentials have shown the same level of interest in open banking as younger generations.
The big takeaway: Financial institutions can take advantage of an enviable level of trust to shape the feelings and behaviors of their customers regarding the use of open banking.
A June 2021 survey of Klarna and Nepa find that 52% of American adults trusted banks, while only 17% trusted neobanks. The fragmentation of open banking in the United States has leads to slow adoption of technology by consumers—55% of American adults never even understood of service.
Open banking providers would be smart to stay on the banks’ good graces. Incumbents could strongly influence the comfort of consumers to share their credentials with third parties.