Mambu: Consumers need to be told their data is ‘protected’ by Open Banking
Banks and fintechs must “make it clear” to consumers that their data will be protected and avoid “industry speak” to better informed them about the benefits of Open Banking, according to Mambu’s Scott Wilson.
In a recent episode of Open Banking Expo TV, the VP of commercial at Mambu said that while “big tech” firms have had their own challenges, the industry has “convinced billions of people around the world to globally participate in the data exchange economy”, and that “these are the same individuals who should be actively participating within Open Banking”.
Wilson referred to the findings of a survey conducted by Mambu, called ‘Disruption Diaries’, last year among 2,000 consumers, which found that 80% used one or more fintech apps, “yet 52% of those same consumers had never heard of Open Banking”.
He urged the industry to avoid “complex, ambiguous terminology” to talk about Open Banking on the basis that “your typical consumer doesn’t need to know some of these complexities”.
“If the businesses and fintechs moved towards more human-to-human interactions, we’ll see that [consumer] engagement level increase,” Wilson said.
“We need to really focus on the value, choice and flexibility [of Open Banking]. The key deterrent we see in the market today is around the risk and use of someone’s data. We need to make it clear that it will be protected, [and] that they will instantly receive value in this data exchange.”
Wilson was joined on the TV episode by Salt Edge’s growth officer Alina Beleuta, to discuss Mambu’s 2022 Partners Predictions Report and what it reveals about Open Banking and Open Payments this year.
She said that consumers should be informed about Open Banking and its benefits “by the channels they use everyday”, such as bank and fintech apps.
“The banks need to build transparency on how Open Banking is secure and how we are in control of the data,” she added.
“The main channel of communication would be the fintechs and the merchants, because they are the ones driving demand for Open Banking and they should build awareness of the benefits.”
To watch this episode of Open Banking Expo TV, in association with Mambu, click here.