Roles Shift as U.S. Open Banking Slows
- Date:December 23, 2020
- Author(s):
- Emmett Higdon
- Report Details: 16 pages, 2 graphics
- Research Topic(s):
- Digital Strategy & Experience
- Digital Banking
- PAID CONTENT
Overview
The concept of open banking—enabling consumers to seamlessly and securely share their bank data with third parties—has promised to spur innovation and deliver exciting new products and services to consumers. Market-driven standards, consumer demand for privacy reform, and consolidation in the aggregation space signal the next phase in the U.S. evolution toward open banking. Financial institutions must act now to remain the center of their customers’ financial hub by addressing functional gaps and taking the lead in meeting the demand for greater transparency and control over shared data security and privacy.
Key questions discussed in this report:
- What functionality are consumers seeking most outside their primary bank?
- Why do consumers look to third parties for financial functionality?
- What hurdles does open banking continue to face in the United States?
- How should banks prepare now for tighter control of consumer data?
- What role should banks play in helping customers manage third-party access?
Methodology
Consumer data in this report is based on information gathered in Javelin surveys administered online in June 2020 to a random-sample panel of 10,762 consumers and from April to May 2019 to a random-sample panel of 11,448. Data was gathered and weighted to reflect a representative sample of the adult U.S. population. The margin of sampling error in the 2020 survey is ± 0.94% at the 95% confidence level, and ± 0.92%. The margin of sampling error is higher for questions answered by subsegments.
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