US consumers should trust their financial institution before sharing their banking credentials

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The data: More than a quarter of US consumers surveyed said that when it comes to being comfortable with sharing their banking credentials with third parties, trust their financial institution to protect their financial assets is the most important factor, according to a PYMNTS.com survey conducted in conjunction with MX.

While trust in their financial institution is the top determinant of 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: Whatever makes them more comfortable, American consumers are showing interest in using open banking technology.

Among survey respondents who have connected third-party apps to their bank accounts, 29.9% were very or extremely interested and 25.7% somewhat interested in using an open banking portal offered by their personal bank. The level of interest has increased among some groups, especially younger generations or those already comfortable with sharing credentials.

  • 47.1% and 37.2% of Millennials and Generation Zrespectively, were very or extremely interested.
  • 59.8% of consumers who were very or extremely comfortable sharing their credentials showed the same level of interest in open banking as younger generations.

The big takeaway: Financial institutions can leverage an enviable level of trust to shape the sentiments and behaviors of their customers regarding the use of open banking.

A June 2021 survey of Klarna and Nepa found that 52% of American adults trust banks, while only 17% trust neobanks. The fragmentation of open banking in the United States has leads to slow adoption of technology by consumers—55% of American adults have never even understood of service.

Open banking providers would be wise to stay in the banks’ good books. Registrants could strongly influence consumers’ comfort in sharing their credentials with third parties.

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