Open Banking or Connected Banking Is Evolving in the U.S. even Without a Mandate

BOSTON, Dec. 16, 2021 /PRNewswire-PRWeb/ -- The sharing of data permissioned by millions of account owners is being used for account authentication, balance checks, and gathering of transaction data. This information is used to open accounts; provide budgeting, savings and investment advice; and in some instances to facilitate payments. All of this activity is occurring without the assistance of industry-wide data standards, a specific regulatory framework, or a mandate to share data. This is poised to change with open banking, or connected banking, beginning to ramp up in the U.S. Mercator Advisory Group's latest report, Open Banking American Style, explores current developments in connected banking in the U.S.

There is unlikely to be a mandate for open banking in the U.S., so this report has chosen the term connected banking to better describe the sharing of permissioned data. While many financial institutions see themselves only as a provider of data and therefore at a competitive disadvantage, banks and credit unions are beginning to plan how they may proactively reach out to fintechs and others in the financial services market to pull in data to their and their client's advantage. "Connected banking has the opportunity to level the playing field between traditional financial services providers and upstarts," comments Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group and author of the report.

Highlights of the report include:

• The current market for connected banking
• Likely use cases
• Implications for permissioned data without a regulated mandate to participate
• The opportunities for financial institutions
• Overview of the ecosystem supporting connected banking
• Status of regulation in this market

This report has 15 pages and 1 exhibit.

Companies mentioned in this report include: Acorns, Fiserv, Plaid, Envestnet Yodlee, Finicity, FinLocker, Square, Truelayer

Members of Mercator Advisory Group's Debit Advisory Service have access to this report as well as the upcoming research for the year ahead, presentations, analyst access, and other membership benefits.

For more information and media inquiries, please call Mercator Advisory Group's main line: (781) 419-1700, send e-mail to [email protected].

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About Mercator Advisory Group
Mercator Advisory Group is the leading independent research and advisory services firm exclusively focused on the payments and banking industries. We deliver pragmatic and timely research and advice designed to help our clients uncover the most lucrative opportunities to maximize revenue growth and contain costs. Our clients range from the world's largest payment issuers, acquirers, processors, merchants and associations to leading technology providers and investors. Mercator Advisory Group is also the publisher of the online payments and banking news and information portal PaymentsJournal.com.

Media Contact

Karen Yetter, Mercator Advisory Group, 781-419-1700, [email protected]

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SOURCE Mercator Advisory Group