Mastercard leverages open banking for digital account opening

Mastercard is launching a digital account opening tool using open banking to streamline verification and identify insights.

The new service will verify a customer’s account ownership and identity in real-time, prefilling account and routing data to minimise errors.

With digital transaction volumes projected to reach almost $15 trillion by 2027, and an estimated 93 per cent of consumers set to make digital payments this year, Mastercard will partner with fintech innovators to help them expand their customers’ choices.

“Digital account opening is central to onboarding new customers and growing a business,” Mastercard EVP of global open banking and API Jess Turner said.

“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.” 

According to Mastercard, it will help both fintechs and banks know their customers and their accounts to promote secure digital account opening for digital wallets, new bank and/or investment accounts, distributions and account-based payments.

“Our digital identity and open banking networks instil confidence on both sides of an interaction,” Mastercard EVP of identity solutions Chris Reid said.

“By securing our online ecosystem, we are delivering on our promise to bring more people and businesses into the digital economy.”