USA 2023: Seamless digital account opening to boost fintech growth

NEW YORK, N.Y. — Today, at Fintech Nexus USA 2023, Mastercard announced the launch of an enhanced Open Banking for Account Opening solution

Increasingly, people are turning to fintech companies to provide them with the customer service traditional finance lacks. 

In 2022, 78% of adults were found to prefer a banking experience through the website or a mobile app. As more people engage with their finances online, digital transaction volumes are expected to reach $15 trillion by 2027. 

The digital experience, while essential, is still the victim of fraud and sticking points. To help financial institutions provide digitally based products that are both safe and simple, Mastercard is launching an enhanced Open Banking for Account Opening solution. 

Jess Turner, EVP, Global Open Banking and API at Mastercard.
Jess Turner, EVP, Global Open Banking and API at Mastercard.

“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 of Global Open Banking and API at Mastercard.

The solution focuses on security and transparency by integrating owner verification and identity insights into an API. It aims to improve the account opening process and provide a simple way for fintechs to provide account verification to their clients. 

“It is crucial that we deliver service excellence from the beginning of our customer relationship by providing an experience that streamlines the account opening process,” said Dee Choubey, Co-Founder and CEO of MoneyLion, a Mastercard Partner. “We are proud to work with innovative and industry-leading partners like Mastercard to offer cutting-edge digital account opening solutions for our suite of financial products that let us prioritize convenience, security, and accessibility for our customers.”

The product verifies customers’ ownership of accounts and their identity in real time and prefills account data to reduce errors. Using consumer-permissioned data from open banking and identity data networks will allow digital account opening for digital wallets, bank accounts, distributions, and account-based payments. 

“At Mastercard, trust is our business. Our digital identity and open banking networks instill confidence on both sides of an interaction,” said Chris Reid, EVP of Identity Solutions, Mastercard. “By securing our online ecosystem, we deliver on our promise to bring more people and businesses into the digital economy.”

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  • Isabelle Castro Margaroli

    Isabelle is a journalist for Fintech Nexus News and leads the Fintech Coffee Break podcast.

    Isabelle's interest in fintech comes from a yearning to understand society's rapid digitalization and its potential, a topic she has often addressed during her academic pursuits and journalistic career.