US consumers are demonstrating growing awareness and interest in open banking, research has revealed. This shift in sentiment reflects evolving attitudes, preferences, and concerns regarding data sharing and security in the digital era.
Axway, an API management and integration software company, quizzed 1,000 US adults in a consumer survey shedding light on how Americans anticipate the sharing and security of their personal data.
Fifty-five per cent of respondents report familiarity with the concept of open banking, and 32 per cent expressing a solid understanding. This signifies significant progress compared to 2021 when only 48 per cent were familiar with the term.
The study also highlights growing support for the open banking movement, with 60 per cent of consumers viewing it as a positive development, up from 51 per cent in the previous year.
Laurent Van Huffel, SVP of financial services and open banking North America at Axway, commented: “It’s encouraging that consumer trust seems to be growing when it comes to open banking and the API technologies that underpin it, because trust is critical to banking.
“The adoption of open banking this year has been a bit disappointing, but experts in the financial services industry agree that it’s not a matter of if we move toward open banking; it’s a matter of when.”
While open banking garners increased support, data security remains a paramount concern for consumers. Nearly half of Americans acknowledged they have fallen victim to scams or fraudulent activities. While two-thirds feel that their banks adequately educate them about different types of financial fraud and prevention measures, one-third remains dissatisfied.
Concerns about the sophistication of cybercriminals also loom large, as 62 per cent express anxiety about criminals devising elaborate schemes, often utilising social media accounts to construct convincing narratives.
Of those surveyed, more than 60 per cent expressed a desire for securely sharing their personal data with healthcare providers and third-party financial service organisations. However, they remain unaware of the storage location of their data.
“No matter the industry – energy, finance, healthcare, retail, or so on – companies are trying to provide a digital experience that is both easy and connected with vendors or partners, as well as secure and private in their data management,” said Brian Otten, VP, digital transformation catalysts. “Companies need to bridge the gap between efficient API consumption and opening data in such a way that users are pleased with the digital experience and also trust that their data is being used with discretion and with their consent.”