Consumers open to secure open banking, surveys find

Open banking is gaining traction with consumers around the world, according to separate studies by Entrust and Axway. Researchers from both organizations noted that banking is fast becoming an integral part of the digital customer experience.

The Great Payments Disruption, published March 8, 2022, by Entrust, surveyed 1,350 consumers in the United States, Canada, United Kingdom, Germany, Saudi Arabia, United Arab Emirates, Singapore, Australia and Indonesia.

Axway Global Consumer Survey: The openness of today's consumers to open data, published March 9, 2022, by Axway and conducted by Propeller Insights in April and November 2021, polled 5,074 consumers in the United Kingdom, United States, Brazil, Germany and France.

Security concerns

Jenn Markey, vice president of product marketing at Entrust, noted that digital-first consumers want secure online banking that protects them from fraud. "[M]ore than two-thirds of consumers in our survey changed their bank or credit union after receiving a fraud or privacy alert," she said. "It's clear that financial institutions must meld rich digital experiences with proven security measures such as biometric security solutions to increase consumer trust and loyalty."

Axway survey respondents expressed similar security concerns, particularly in Europe, with 60 percent of French respondents viewing open banking as a negative development, researchers found. In addition, 57 percent of Germans and 54 percent of British respondents expressed concerns about security and data privacy, they added.

Vince Padua, chief technology and innovation officer at Axway, stated that overall, the report indicates consumers have an appetite for openness and satisfying digital experiences. "Securely opening up data while building on heritage infrastructure can help craft these experiences – while allowing companies to give us the privacy and security we crave," he said.

A new banking landscape

Describing a multilayered, emerging landscape of open banking involving multiple touchpoints and consumer options in payment methods and banking access, Entrust researchers found digital-first consumers receptive to omnichannel product and service offerings, with 88 percent of survey respondents preferring to bank online and 59 percent preferring to access accounts via credit union or banking apps.

Entrust researchers additionally noted that low fee structures and flexible payment options give banks a competitive advantage. Consumers are most likely to consider lower fees, digital solutions and security when choosing a bank, they stated, adding that 86 percent of U.S. respondents said they would consider using a branchless online banking service.

Axway researchers pointed out that 84 percent of survey respondents believe banks should not prevent the movement of money between other financial services, which is the basic premise of open banking, according to Eyal Sivan, head of open banking at Axway.

"We're seeing such enthusiasm in dynamic markets like Latin America, the Middle East and Africa," Sivan said. "People there have really grasped the potential of open banking to democratize finance – and companies are moving quickly to seize a great business opportunity."

A copy of Entrust's report is available at: www.entrust.com/c/great-payments-disruption .

The Axway report is available at resources.axway.com/home/axway-global-consumer-survey .

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