Mambu’s research reveals consumers are hesitant to use Open Banking

By Megha Bhattacharya

A new study released by Mambu has revealed that more than half (52%) of consumers have never heard of open banking and 61% have never used it, in spite of 80% of respondents using one or more mobile finance apps. Commissioned by Mambu, the Censuswide survey was conducted with 2,000 global consumers.

“The research reveals the majority of customers don’t understand what open banking is, how it works and what it means for them”, said Elliott Limb, Mambu’s Chief Customer Officer. “But it also reveals they do care about receiving better financial services that support their lifestyles – smart banking. If banks address this need and lack of understanding, it will help banks build customer loyalty and provide genuinely innovative, differentiating revenue-generating services.”

The survey also showed a change in attitude and priorities as a result of the crisis, with 52% wanting more control over their finances. At the same time, 40% said the pandemic had changed their attitudes to privacy and 24% to data sharing. However, existing concerns remain with 48% of consumers claiming they are ‘scared’ to use open banking and 53% still believing that open banking is a dangerous use of data sharing. 57% also said they would be more likely to use it if their bank had more successfully implemented and promoted it.

“Banks must accept that open banking is still a not fully comprehended phenomenon so this is the starting point,” said Dmitrii Barbasura, CEO and Co-Founder, Salt Edge, a Mambu partner. “We believe they need to invest time and effort in educating customers about the new possibilities they get access to, and also inform them about their rights and the high safety level covered by open banking.”