PURCHASE, N.Y.—A new survey has found that as of 2022, 78% of adults in the U.S. prefer to bank via a mobile app or website. The result? According to Mastercard, 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, the company added.
In response, it said it is launching an enhanced Open Banking for Account Opening solution.
According to Mastercard, the solution integrates account owner verification with identity insights into a single API.
Mastercard said the 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.
‘Simpler & Safer’
“The result is a simpler, faster, and safer way to open a new account for the 93% of consumers likely to use digital payments this year,” Mastercard stated. “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.”
The company further said 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. Mastercard said the new solution will assist with:
- Digital wallets
- New bank and/or investment accounts
- Distributions
- Account-based payments