Mastercard has unveiled a digital account opening tool that uses open banking to integrate customer verification with identity insights into a single API.
Mastercard is launching an enhanced Open Banking for Account Opening solution. „This innovation integrates account owner verification with identity insights into a single API (Application Programming Interface) to help businesses meet their customers’ needs for security and transparency.” – according to the press release.
„Mastercard Open Banking for Account Opening verifies a consumer’s account ownership and their identity in real-time. It also prefills account and routing data, minimizing errors. The result is a simpler, faster, and safer way to open a new account for the 93 percent of consumers likely to use digital payments this year.” – the company explains.
For financial institutions and fintechs it means a single, simple solution to verify an individual opening a new account while minimizing friction and risk of fraud. Mastercard added.
Open Banking for Account Opening draws on the safe exchange of consumer-permissioned data from open banking and identity data network leveraging industry standards, machine learning, and fraud prevention programs. This helps fintechs and banks confidently know who their customers are and that they own their linked accounts, promoting secure digital account opening for the following: Digital wallets , New bank and/or investment accounts, Distributions and Account-based payments.
“Digital account opening is central to onboarding new customers and growing a business. Mastercard is uniquely positioned to help fintechs and banks onboard customers safely and seamlessly to accelerate growth while protecting themselves and consumers from the risks of fraud and false declines.” said Jess Turner, EVP, Global Open Banking and API.
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Innovations in finance and payments are unlocking new experiences for consumers and fintechs alike. As of 2022, 78 percent of adults in the U.S. prefer to bank via a mobile app or website. As more people open accounts and manage their finances online, digital transaction volumes are projected to reach nearly $15 trillion by 2027. With that growth comes more sophisticated fraud, such as account takeover and synthetic identity fraud, impacting consumers and businesses.
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
