Read 5 reasons why you shouldn’t wait to move forward on your open finance strategy and get ready for 1033.

Want to talk more? Our team is ready to engage with you at any stage of your open finance journey. Whether you are beginning to build your API or optimizing your strategy for 1033 compliance, Data Access is your solution. 

Read 5 reasons why you shouldn’t wait to move forward on your open finance strategy and get ready for 1033. 

How to Achieve 1033 Compliance and Gain a Competitive Advantage

We&rsquo;re now nearly 60 days out from the final <a href="https://www.mx.com/blog/cfpb-dodd-frank-section-1033/#what-is-1033">Section 1033</a> ruling from the Consumer Financial Protection Bureau (CFPB). Like most financial institutions who are considered data providers under the final rule &mdash; those who provide covered data under Regulation E or Regulation Z accounts, you&rsquo;re probably asking several key questions like:&nbsp;
<ul>
<li style="font-weight: 400;" aria-level="1">What does the final Section 1033 rule mean for me?</li>
<li style="font-weight: 400;" aria-level="1">Do we really need to worry about this now?</li>
<li style="font-weight: 400;" aria-level="1">Will everything change based on the recent election results?</li>
</ul>
<blockquote>
&ldquo;&hellip;the institutions that adopt Open Banking and compete to deliver the best experience will be more likely to earn consumer loyalty and engagement for the long term.&rdquo; -Jane Barratt, MX Chief Advocacy Officer
</blockquote>
<h2>Don&rsquo;t Wait to Move Forward</h2>
At MX, we hear these questions every day and we&rsquo;re here to help. Bottom line: Don&rsquo;t wait to move forward on your open finance strategy and get ready for 1033. Here&rsquo;s why:&nbsp;
<h3>1. Open Finance isn&rsquo;t about you &mdash; it&rsquo;s about the consumer. </h3>
The CFPB states the final rule is meant to enable consumers to &ldquo;more easily switch to providers with superior rates and services. By fueling competition and consumer choice, the rule will help lower prices on loans and improve customer service across payments, credit, and banking markets.&rdquo; Consumers have more choice &mdash; <a href="https://www.mx.com/research/consumer-research-digital-and-mobile-banking/">and more accounts</a> &mdash;&nbsp;across different financial providers&nbsp;than ever. This shift encourages everyone in the financial data ecosystem to innovate for consumers, helping attract and retain them as consumers. Offering the best third-party connectivity builds loyalty and helps institutions thrive in a competitive market.&nbsp;
<h3>2. Open Finance can create a clear competitive advantage. </h3>
<a href="https://www.openbankingexpo.com/features/feature-open-banking-in-the-us-a-new-era-of-consumer-centric-innovations/">Jane Barratt recently said</a>, &ldquo;Institutions of any size that think of Section 1033 as a regulatory stick instead of a competitive carrot are at risk of being left behind.&rdquo; Consumers want their providers to know them. They want personalized products, services, and offers. And, they want a good mobile and digital experience. But, most financial institutions are missing key details on where consumers share data. <a href="https://www.mx.com/blog/what-is-open-finance/">Open finance</a> data unlocks the door to gain better insights about competitor products your customers utilize and create precise targeting and compelling offers.&nbsp;
<blockquote>
Data providers who start now with Open Finance will be in a better position to deliver on consumer expectations and will have the advantage over those who choose to wait.
</blockquote>
<h3>3. Political climates may shift but Open Finance is here to stay.&nbsp; </h3>
In light of the results of the recent U.S. election, rumors are circling on what changes may affect the CFPB. Section 1033 has received broad bipartisan support from the start and we should expect to continue to execute against the final rule. And, regardless of regulation, Open Finance and consumer-permissioned data sharing are here to stay. Institutions should focus on how Open Finance can help drive competitive advantages for them and better outcomes for consumers.&nbsp;
<h3>4. API-based connectivity is the future. </h3>
Consumer-permissioned <a href="https://financialdataexchange.org/FDX/News/Press-Releases/Financial_Data_Exchange__FDX__Reports_76_Million_Consumers_Use_FDX_API.aspx">data sharing is already widely adopted</a> across the United States. And, it&rsquo;s clear that the industry is shifting away from screen scraping. This is the only path forward. And, it&rsquo;s what consumers are asking for from their providers. When asked what they would do if their bank or credit union didn&rsquo;t support connecting to their favorite fintech apps, <a href="https://www.mx.com/research/consumer-research-digital-and-mobile-banking/">72% said they would switch to one that does.</a> Data providers need to take seriously their responsibility to their consumers to provide secure and reliable connectivity.
<h3>5. Open Finance can lead to greater innovation and financial wellness. </h3>
The imperative of Open Finance is to connect the world&rsquo;s financial ecosystem to revolutionize financial wellness for consumers. This will continue to be the drumbeat to which MX marches &mdash; and it creates a win-win scenario for both consumers and financial institutions. It helps put the right financial solutions in the hands of the right consumers at the right time while also fueling higher deposits and income for financial providers so they can pour more energy into innovation that moves the industry forward.
<h2>Where to Get Started for Data Providers: Your Quick Guide to Key Requirements</h2>
We&rsquo;re making it as easy as possible for you to understand key requirements as a data provider under Section 1033. [<a href="https://www.mx.com/guides/1033-data-provider-quick-guide/" target="_blank" rel="noopener">Download our full quick guide</a>] and in the meantime, here&rsquo;s a quick overview of core responsibilities, what to consider for data partners, and where MX can help:&nbsp;
<h3>Core Data Provider Responsibilities&nbsp;</h3>
Under the final rule, data providers are responsible for enabling both consumers and third parties to access data, with key requirements related to:&nbsp;
<ul>
<li style="font-weight: 400;" aria-level="1"><a href="https://files.consumerfinance.gov/f/documents/cfpb-1033-nprm-reg-text-with-1001_2023-10.pdf#page=8">Covered Data</a>: Covered Data: Ensure covered data is available in an accessible electronic format via a performant developer interface (API) for all qualifying third-party requests.</li>
<li style="font-weight: 400;" aria-level="1"><a href="https://files.consumerfinance.gov/f/documents/cfpb-1033-nprm-reg-text-with-1001_2023-10.pdf#page=10">API Management: </a>Maintain the developer interface at required performance standards, provide advance notice of downtime, and publish API documentation.</li>
<li style="font-weight: 400;" aria-level="1"><a href="https://files.consumerfinance.gov/f/documents/cfpb-1033-nprm-reg-text-with-1001_2023-10.pdf#page=10">Third-Party Management:</a> Respond to third-party requests with accurate data or a reason for denial, document denials, and provide guidelines for accessing the developer interface.</li>
<li style="font-weight: 400;" aria-level="1"><a href="https://files.consumerfinance.gov/f/documents/cfpb-1033-nprm-reg-text-with-1001_2023-10.pdf#page=17">Analytics and Reporting</a>: Publish monthly performance data for the developer interface and maintain compliance records.</li>
<li style="font-weight: 400;" aria-level="1">Consent Management: While data providers are not obligated to manage consumer consent or to provide consent revocation tools under Section 1033, data providers can choose to confirm consent and provide revocation tools, consistent with current industry best practices. If so, key requirements include developing a system to manage consumer consents, enabling easy revocation of third-party access, and ensuring reauthorization every 12 months.</li>
</ul>
<h3>Evaluating Data Partners </h3>
Choosing the right open banking partner is critical for delivering seamless financial experiences. Here are a few key criteria to consider when evaluating potential open banking data partners:
<ul>
<li aria-level="1">Interoperability: Choose partners committed to connecting with all data intermediaries and maintaining a robust, open network.</li>
<li aria-level="1">API Quality: Look for reliable, fast, and well-documented APIs using FDX standards that are easy to integrate. </li>
<li aria-level="1">Consent: Quality partners use clear, consent flows and, where appropriate, allow data providers to manage consent if they choose to do so. </li>
<li aria-level="1">Privacy: Choose a partner with strong encryption, compliance certifications, and clear data policies.</li>
<li aria-level="1">Innovation: Ensure partners can adapt quickly to regulatory changes and market trends.</li>
<li aria-level="1">Partnership: Find a collaborative partner, not just a vendor, that can offer strong support, customization, and a growth mindset.</li>
<li aria-level="1">Reputation: Assess a partner&rsquo;s credibility through client success stories, industry recognition, and reliable reviews.</li>
</ul>
<h3>How MX Can Help&nbsp;</h3>
For more than a decade, MX has been a leader in open finance and consumer-permissioned data sharing. Our <a href="http://mx.com/products/data-access">Data Access</a> solution combines an API platform that meets FDX standards with built-in analytics that can help you meet your 1033 compliance obligations and provide you with actionable intelligence at the same time.&nbsp;
Here&rsquo;s why you should consider MX as your data partner:&nbsp;
<ul>
<li style="font-weight: 400;" aria-level="1">MX partners with you to build your API. With Data Access, your APIs are translated to FDX standards. Our team guides you through creation, testing, and launch, while our self-serve tools empower you to unlock the full potential of open banking.&nbsp;</li>
<li style="font-weight: 400;" aria-level="1">MX is an intermediary. This allows us to actually test your API with you. We&rsquo;ve seen this significantly speed up the process to launch your API and reduce any potential errors.</li>
<li style="font-weight: 400;" aria-level="1">Data Access scales your APIs across multiple intermediaries. Data Access follows FDX standards which are designed to guarantee interoperability across the ecosystem. This allows data providers to scale APIs and manage all intermediaries effortlessly in a central portal.&nbsp;</li>
<li style="font-weight: 400;" aria-level="1">Data Access delivers real-time analytics on data sharing. Data Access is the leading platform that surfaces real-time reports about all of the data your consumers share. You will better understand your customers&rsquo; needs, what products they are utilizing from your competitors, and have the ability to build precise targeting and segmentation for compelling offers.&nbsp;</li>
</ul>
<img src="https://cms.mx.com/assets/d5e3d8c3-5f03-4568-8fd6-73b5a4bbdfb6?width=3897&amp;height=2508" alt="Data Access Image" />
See our detailed <a href="https://www.mx.com/guides/1033-data-provider-quick-guide/" target="_blank" rel="noopener">Quick Guide to 1033 Requirements for Data Providers</a> to learn more about key responsibilities and how MX can help meet and go beyond compliance requirements.&nbsp;

How Data Providers Can Compete and Comply: Achieving 1033 Compliance and Gaining a Competitive Advantage

MX is excited to share that Founder Ryan Caldwell has returned to the company as Chief Executive Officer.

Caldwell founded MX in 2010 with a mission he and Co-Founder Brandon Dewitt established that continues today — empowering the world to be financially strong.

MX Announces Return of CEO and Founder Ryan Caldwell

Today, MX is excited to share that Founder Ryan Caldwell has returned to the company as Chief Executive Officer, effective immediately. Ryan has been serving as the Executive Chair of the MX Board of Directors since stepping down as CEO in 2021.
In late 2021, Caldwell made the difficult decision to step aside as CEO to focus on his daughter&rsquo;s health. She is doing much better and getting stronger every day, making it the right time for Ryan to return as CEO. We are excited to welcome Ryan back to MX in a full-time capacity.&nbsp;
&ldquo;I am excited to return to MX at such a pivotal moment for both the company and the industry, as financial institutions and fintechs look to leverage consumer-permissioned financial data to grow deposits, increase innovation, and deliver new products and services that strengthen outcomes,&rdquo; said Caldwell. &ldquo;We have an incredible team and opportunity ahead of us to innovate faster and enable real, tangible benefits for consumers and the financial providers that serve them.&rdquo;&nbsp;
Caldwell founded MX in 2010 with a mission he and Co-Founder Brandon Dewitt established that continues today &mdash;&nbsp;empowering the world to be financially strong. MX does this by delivering the industry&rsquo;s most robust and reliable connectivity, data enhancement, and experience solutions to financial services providers.
Additionally, we are excited to share that Chief Technology Officer Wes Hummel will take on an expanded role leading both the MX product and technology teams.&nbsp;

MX Founder Ryan Caldwell Returns as Chief Executive Officer

Here’s 5 key insights from our survey of 1,000+ U.S. consumers that financial providers should consider to increase engagement.

Here’s 5 key insights from our latest survey of 1,000+ U.S. consumers that financial providers should consider to increase consumer engagement. 

Increase Consumer Engagement With Intuitive Money Management Tools

Our latest research shows 25% of U.S. consumers feel completely financially secure today. And, more than half (56%) of respondents say they will be financially secure someday.&nbsp;
But, while they may feel optimistic for the future, they are still worried about the everyday costs of groceries, housing, and more continue to rise due to inflation. And, they may be stuck in old ways when it comes to solving these feelings of financial insecurity.&nbsp;
<blockquote>
&ldquo;In today&rsquo;s increasingly challenging economic environment, it&rsquo;s interesting to see a majority of consumers still relying on manual processes &mdash; adding more burden and potentially stress to managing their finances,&rdquo; shares Jane Barratt, Chief Advocacy Officer and Head of Global Public Policy, MX.&nbsp;
</blockquote>
Financial institutions and fintechs have an opportunity to play a bigger role in helping consumers achieve financial security by relieving the mental burden with proactive, personalized notifications and intuitive money management tools that can do the heavy lifting for them.&nbsp;
Here&rsquo;s 5 key insights from our latest survey of 1,000+ U.S. consumers that financial providers should consider in meeting this opportunity head on:
<h2>1. Consumers still turn to manual bill pay methods over automation. </h2>
When asked what most closely aligns with how they pay bills on a monthly basis, 40% of all respondents say they prefer to manually view and pay each bill every month to keep track of their finances. An additional 24% say they manually pay each bill to make sure they have the funds available.&nbsp;
<h2>2. Incentives could drive consumers to change their payment habits. </h2>
While the majority of consumers (51%) prefer to keep their payment methods the same for convenience, more than one-third (36%) would consider switching if they received an incentive.
<h2>3. The keys to direct deposit switching are rates and rewards. </h2>
When asked if they have ever switched their direct deposit to a different financial institution, the majority (65%) say no. But, nearly half say the top factors that are most likely to make them switch are the ability to earn higher interest rates (22%) or receive cash back incentive or offer to earn rewards for switching (22%).&nbsp;
<h2>4. Personalization is critical. </h2>
Consumers are looking for a financial provider that knows them and puts that knowledge into practice through personalized insights and tools. Forty-nine percent of consumers expect their financial provider to know them. And, 47% of consumers expect greater levels of personalization in banking than ever before. 
<h2>5. Actionable intelligence drives higher engagement and even more data. </h2>
More than half expect their financial provider to leverage the data they have about them to personalize their experience (53%) and provide them with actionable and clear insights about their finances (56%). What&rsquo;s more &mdash;&nbsp;consumers will share even more data if it results in a better experiences.&nbsp;
To read the full report, please visit: <a href="https://www.mx.com/research/driving-engagement-for-consumers-research/">https://www.mx.com/research/driving-engagement-for-consumers-research/</a>

How to Encourage Consumers to Use New Money Management Approaches 

Financial data intelligence makes financial data actionable to increase engagement, improve results, and drive growth.

Financial data intelligence is the ability to make financial data actionable to increase engagement and loyalty, improve results, and drive growth. 

What Is Financial Data Intelligence? Definitions and Benefits

In this post, we will cover: 
<ul>
<li><a href="#what-is-financial-data-intelligence">What Is Financial Data Intelligence?</a></li>
<li><a href="#definitions">Financial Data Intelligence vs. Data Analytics, and Other Terms</a></li>
<li><a href="#how-financial-data-intelligence-works">How Financial Data Intelligence Works</a></li>
<li><a href="#benefits-financial-data-intelligence">Benefits of Financial Data Intelligence</a></li>
</ul>
<h2 id="what-is-financial-data-intelligence">What Is Financial Data Intelligence?&nbsp;</h2>
Vast amounts of consumer financial data are generated daily by each and every consumer. One transaction alone can mean dozens of data points. As a result, banks, credit unions, fintechs, and other financial providers are sitting on mountains of financial data.&nbsp;
However, the majority of financial institutions and fintechs don&rsquo;t have a good way to unlock the value of this data to drive better business and consumer outcomes. But, data is just data. You need to <a href="https://www.mx.com/guides/2024-digital-banking-playbook/">create an actionable step</a> for your customers.
That&rsquo;s where financial data intelligence comes into the picture. Financial data intelligence is the ability to make financial data actionable to increase engagement and loyalty, improve results, and drive growth.&nbsp;
<h2 id="definitions">Financial Data Intelligence vs. Data Analytics, and Other Terms</h2>
Financial data intelligence is a term specific to how organizations leverage consumer financial data. It is a subset of a broader term &mdash;&nbsp;data intelligence, which is used across many industries such as retail, healthcare, manufacturing, etc., when talking about deriving actionable insights from data. Data intelligence is the tools and methods that organizations use to better understand the data they collect, store, and utilize to improve their products and/or services.&nbsp;
Other organizations may refer to similar terms including data analytics and business intelligence when referring to how they analyze data. However, we think data analytics misses a key component that is present with data intelligence: making it actionable. Analysis without action is simply interesting information. To create true data intelligence, the data and insights must be actionable.&nbsp;
<blockquote>
Analysis without action is simply interesting information. To create true data intelligence, the data and insights must be actionable.&nbsp;
</blockquote>
Another similar term that is worth mentioning is &ldquo;<a href="https://en.wikipedia.org/wiki/Financial_intelligence">financial intelligence</a>.&rdquo; What is financial intelligence? It&rsquo;s defined as gathering information about the &ldquo;financial affairs of entities of interest, to understand their nature and capabilities, and predict their intentions.&rdquo; It&rsquo;s often used in conjunction with an investigation of a specific entity by law enforcement or related agencies. In fact, the United States government has an <a href="https://en.wikipedia.org/wiki/Under_Secretary_of_the_Treasury_for_Terrorism_and_Financial_Intelligence">under secretary position within the Department of the Treasury</a> dedicated to terrorism and financial intelligence.&nbsp;
<h2 id="how-financial-data-intelligence-works">How Financial Data Intelligence Works</h2>
It starts with being able to effectively <a href="https://www.mx.com/products/connectivity/">connect</a> to, understand, and act on consumer financial data.&nbsp;
<h3>Connecting the Dots</h3>
Today&rsquo;s <a href="https://www.mx.com/research/what-consumers-want-from-financial-providers/">average consumer has 3 to 5 financial accounts</a> with various banks, credit unions, and other financial providers. It&rsquo;s messy for consumers to manage and makes it increasingly difficult for financial providers to get a full picture of consumers&rsquo; financial lives.&nbsp;
This disjointed <a href="https://www.mx.com/money-experience/">money experience</a> creates blindspots for organizations when it comes to delivering the right products and services to meet consumer needs, targeting consumers with the right messages, and accurately predicting and preventing churn.&nbsp;
By enabling consumers to easily connect and view all of their finances in one place with <a href="https://www.mx.com/products/account-aggregation/">financial account aggregation</a>, it not only helps consumers better manage their money but gives financial providers more visibility into consumer financial data.&nbsp;
<h3>Understanding the Data</h3>
As we stated earlier, data is just data. It requires context, cleansing, and categorization to ensure both consumers and organizations can leverage data to its fullest extent.&nbsp;
With cleansing and categorization, raw data becomes clear transaction information. And, with added context, transaction data becomes more insightful and actionable for consumers. <a href="https://www.mx.com/products/data/">Enhanced data</a> also makes it easier to unlock the value of financial data and enable better decisions, improve efficiency, and uncover new opportunities.
<h3>Creating Actionable Insights and Personalized Experiences</h3>
The last piece of the puzzle is how you leverage the data to <a href="https://www.mx.com/blog/personal-data-in-exchange-for-personalized-experiences/">create personalized experiences</a>, deliver proactive insights, and drive engagement and growth.&nbsp;
Financial data intelligence combines connected and enhanced data with the power of artificial intelligence, machine learning, and advanced analytics. It helps financial service providers to increase engagement with consumers by delivering insights and recommended actions to help them on their financial journey and surface new insights and areas of opportunity to drive growth.&nbsp;&nbsp;
<div style="padding: 56.25% 0 0 0; position: relative;"><iframe style="position: absolute; top: 0; left: 0; width: 100%; height: 100%;" title="Financial Data Intelligence Promo - Sachi - March 2024" src="https://player.vimeo.com/video/928032801?h=4c12f88c79&amp;badge=0&amp;autopause=0&amp;player_id=0&amp;app_id=58479" frameborder="0"></iframe></div>
<h3>The Benefits of Financial Data Intelligence&nbsp;</h3>
Simply put: with actionable financial data intelligence, financial providers can increase engagement and loyalty, acquire more customers, and identify growth opportunities. And, financial providers can help their customers better understand and manage their finances.&nbsp;
Here&rsquo;s a look at our top 10 benefits of financial data intelligence:&nbsp;
<ol>
<li style="font-weight: 400;" aria-level="1">Acquire and retain more customers with <a href="https://www.mx.com/products/connectivity/">reliable connectivity solutions</a>, <a href="https://www.mx.com/products/data/">enhanced data</a>, and <a href="https://www.mx.com/products/experience/">personalized digital experiences</a>.</li>
<li style="font-weight: 400;" aria-level="1">Increase consumer engagement and adoption by delivering <a href="https://www.mx.com/products/financial-insights/">personalized financial insights</a> and recommended actions.</li>
<li style="font-weight: 400;" aria-level="1">Surface areas of opportunity to increase deposits, expand <a href="https://www.mx.com/use-cases/account-opening/">account openings</a>, and engage with your customers.</li>
<li style="font-weight: 400;" aria-level="1">Improve financial health by enabling consumers to better understand and manage their finances with <a href="https://www.mx.com/products/personal-financial-management/">Personal Financial Management (PFM) tools</a>.</li>
<li style="font-weight: 400;" aria-level="1">Deliver the right message, to the right person, at the right time to<a href="https://www.mx.com/products/customer-analytics/"> improve ROI and marketing campaign effectiveness</a>.</li>
<li style="font-weight: 400;" aria-level="1">Predict and prevent churn with a better understanding of trends and behaviors</li>
<li style="font-weight: 400;" aria-level="1">Increase customer satisfaction and loyalty with <a href="https://www.mx.com/products/experience/">personalized experiences</a> that meet consumers where they are.</li>
<li style="font-weight: 400;" aria-level="1">Optimize business processes by breaking down data silos and making it easier to unlock the value of financial data.</li>
<li style="font-weight: 400;" aria-level="1"><a href="https://www.mx.com/case-studies/becu/call-center/">Reduce call center volume</a> and customer frustration by making data easily understandable and actionable.</li>
<li style="font-weight: 400;" aria-level="1">Accelerate innovation and product enhancements based on actionable data about product adoption, usage, and behaviors.</li>
</ol>

What Is Financial Data Intelligence? How it Works, Key Definitions & Benefits

Financial providers should leverage AI, while ensuring that they maintain human touch for better customer experiences.

While AI can be a powerful tool, financial institutions must ensure that they maintain human touch in their customer experience.

Striking a Balance Between Human and AI for Financial Institutions

Sixty-four percent of business owners said that they anticipate artificial intelligence (AI) will improve customer relationships and boost productivity across their business, <a href="https://www.forbes.com/advisor/business/software/ai-in-business/">according to Forbes</a>. And, this expectation has made AI the perceived answer to nearly any problem facing the financial services industry.
While AI and its impact will be incredible, financial institutions must be aware of how it affects customer relationships. AI has the power to make countless business processes more efficient &mdash; but efficiency does not always translate to an improved customer experience. Financial providers should take advantage of the efficiency boost that AI can provide, while still maintaining a high level of human touch for the customers.
<h2>Where AI Wins &mdash; and Where it Fails</h2>
Getting the most out of AI comes down to recognizing where AI wins &mdash; and where it fails. One of AI&rsquo;s greatest strengths is enabling businesses to automate highly repeatable processes. And, in the financial services industry, there are many opportunities for just that.&nbsp;
Certain customer interactions are filled with repeatable processes where AI can have a direct impact on consumers and how they manage their finances. For instance, AI can deliver proactive reminders about upcoming bills. Transactions can be <a href="https://www.mx.com/products/data-enhancement/">automatically categorized</a> for better visibility into where money is going. Institutions can generate <a href="https://www.mx.com/products/financial-insights/">personalized recommendations</a> based on spending habits to help consumers make better financial decisions.
However, money is personal and one of AI&rsquo;s biggest shortcomings is its inability to empathize with humans. When AI is the only touchpoint between consumers and their financial provider, customer experiences can lose the human touch that drives higher engagement, loyalty, and customer satisfaction.
<h2>Make Human Interactions Accessible</h2>
More than half of consumers (51%) say money is their main source of stress, <a href="https://www.mx.com/research/financial-apps-fall-short/">according to MX research</a>. And, they want their financial providers to help them navigate their money anxiety. In this light, financial providers need to assess whether their processes and solutions are alleviating or contributing to consumer stress.
In some ways, AI and machine learning can greatly reduce the burden on customer support teams. Providing checking account balances, learning the due date of an upcoming payment, or confirming transactions, and other informational tasks can all be automated and improved through AI and digital tools.
But sometimes, consumers just want to talk to a real person &mdash; and not have to jump through hoops to do so. For instance, too often consumers find themselves on a seemingly never-ending loop of automated voice messages that just add to frustration when a simple conversation with a representative could solve their problem. It is not that AI needs to be removed from customer interactions, but rather it needs to be able to recognize where it can help and where it needs to refer consumers more quickly to a human representative.&nbsp;
<h2>Finding Harmony in the Human and AI Experiences</h2>
<a href="https://www.pymnts.com/artificial-intelligence-2/2025/will-ai-eventually-replace-human-workers-or-augment-them/">David Autor</a>, MIT economics professor said, &ldquo;There are two competing visions of AI. One is [that] machines make us irrelevant. Another is [that] machines make us more useful.&rdquo;&nbsp;
In the early days of AI, financial institutions jumped on the possibility of AI making people in customer-facing positions irrelevant. Instead, we should see it as making us more useful. There is an ideal middle ground where AI and machine learning improve the impact and efficiency of human-led customer experiences. Luckily, financial institutions do not have to choose between AI and humans. They are not at odds with each other. The best financial services providers will use both.
AI empowers financial services teams to focus their human efforts on what they do best &mdash; providing care and understanding to those that need it. And, by finding a balance between human and machine, financial service providers can accomplish more than they ever could with manual processes.

How Financial Institutions Can Leverage AI While Maintaining the Human Touch

MX hosted its Fintech Reads book club with Fintech Takes to discuss "The Verifiers" and how data use ties to the fintech industry.

“The Verifiers” teaches key lessons about data use, trust, and privacy — with key lessons for the fintech industry from Fintech Reads.

Fintech Reads Book Club: The Verifiers

A novel, community-focused experience has emerged in the fintech sector for individuals who believe groundbreaking ideas originate from creative inspiration and insightful reading. In April, MX&rsquo;s Fintech Reads was born &mdash; with its inaugural event at New York Fintech Week. Filled with everything from fiction to the latest best-selling business book, Fintech Reads brought together finance and fintech leaders for open conversations and networking opportunities about the books, business and ethical challenges, and opportunities that keep us up at night.
The event was such a hit that MX and <a href="https://fintechtakes.com/">Fintech Takes</a> continued the conversation with a virtual Fintech Reads Book Club meeting to discuss Jane Pek's debut novel. The Verifiers spins a captivating mystery around the burgeoning world of online dating and the increasingly blurred lines between our digital and real-life personas. This witty, contemporary detective story is a sharp examination of privacy and the pervasive nature of data collection. With the ethical considerations in the data space, this book has close ties to the finance industry and was a natural choice as our first fiction selection for Fintech Reads Book Club.&nbsp;
The novel introduces Claudia Lin, a sharp, Jane Austen-loving, Chinese-American woman who finds herself drawn to the secretive world of Veracity &mdash; a detective agency that specializes in vetting individuals that meet on dating apps. Clients hire Veracity to uncover the truth behind carefully curated online profiles, seeking assurance before investing emotionally or otherwise.
The Verifiers quickly establishes a world where personal data is the ultimate commodity. The online dating industry, as depicted by Pek, thrives on the accumulation and analysis of vast amounts of user information. In our book club discussion, we explored the following key themes in the book, and how it made us think about our responsibilities to our customers when it comes to data stewardship:&nbsp;
<h2>The Ethics of Data Collection and Algorithmic Influence</h2>
Veracity's very existence highlights the anxieties surrounding online authenticity. The novel delves into how dating platforms collect extensive personal data, using complex algorithms not only to match individuals, but also to potentially shape their desires and choices. This raises critical questions about the extent to which users are aware of, and consent to, this level of data harvesting and algorithmic manipulation.&nbsp;
The book club group discussed the important role that companies can play in consumer outcomes by influencing consumer behaviors. In the fintech industry, this may look like <a href="https://www.mx.com/products/financial-insights/">prompting users</a> to deposit more of their paycheck directly into their savings account &mdash; which can benefit the consumer. Or, they can push consumers toward outcomes that are better for the business (rather than the consumer), by making the button to share more user data more visible than the button to exit a popup window.&nbsp;
<h2>Privacy in the Digital Age</h2>
Claudia's investigations often involve delving deep into the digital footprints of individuals, blurring the boundaries of privacy. While the characters in the book did give permission for their data to be used, they were unaware of negative data use applications. The ease with which online information can be accessed and pieced together to form a picture of someone &mdash; accurate or otherwise &mdash; is a central theme.&nbsp;
In the fintech space, there are novel (and often beneficial!) applications of user data to improve their financial lives, like non-traditional credit underwriting. If misused, however, these details can be pieced together by bad actors to <a href="https://www.mx.com/blog/fraud-on-the-rise-and-how-to-fight-it/">facilitate financial fraud</a> and other bad consumer outcomes.
<h2>Corporate Deceit, Data Misuse, and Surveillance</h2>
As Claudia investigates a client's suspicious death, she uncovers a web of corporate deceit within the lucrative matchmaking industry. This plotline shines a light on the potential for powerful tech companies to exploit user data for profit, control, or even more sinister purposes, often with little transparency or accountability. The novel also subtly critiques a society growing accustomed to trading privacy for convenience, whether in finding a partner or navigating daily life.&nbsp;
Our book club discussion highlighted the need for extensive consumer education to make it clear what consumers are consenting to when they check a box or start using a service. In the financial services and fintech industries, consumers are sharing extremely sensitive data &mdash; which calls for a need for greater visibility and trust from those they are sharing it with.&nbsp;
<h2>Building Trust and Securing the Future</h2>
Through Claudia's engaging narration and the unfolding mystery, The Verifiers serves as a timely commentary on our relationship with technology. Pek masterfully weaves together a compelling whodunit with a thought-provoking exploration of how our data is collected, controlled, and commodified, leaving readers to ponder the true cost of navigating love and life in the digital age. As financial services and fintech professionals, we owe it to our customers to think deeply about these issues and do the right thing by them and their data. Their financial outcomes depend on it!

Beyond the Swipe: What "The Verifiers" Taught Us About Data Trust

MX's innovative new and and updated products will transform your data into action. 

Learn about the latest MX product innovations including Direct Deposit, Manage Money Dashboard, live data-sharing reports, and more.

MX Product Innovations | Get the Most Out of Your Data

&rdquo;Growth isn&rsquo;t your biggest challenge. Your biggest challenge is how you use your data to power growth,&rdquo; says Wes Hummel, MX&rsquo;s Chief Product and Technology Officer.&nbsp;
Financial institutions have more data than ever, but making it actionable and turning it into real results isn&rsquo;t easy. Consumers want relevant and personalized financial insights. And, financial institutions need to better harness data to win in an increasingly competitive market.
This is where MX can help. Our <a href="http://mx.com/product-updates/2025/spring/">latest product innovations</a> are designed to help financial providers transform data into growth.
Here is an overview of how our recent updates and innovations help you tap into <a href="https://www.mx.com/blog/what-is-consumer-permissioned-data/">consumer-permissioned data</a> to drive growth, build stronger relationships, and deliver better experiences.
<h2>Making Data More Actionable</h2>
When it comes to growth, deposits are at the top of most financial institutions&rsquo; list. But, how do you identify the right opportunities to grow deposits? MX&rsquo;s <a href="https://docs.mx.com/use-cases/direct-deposit/">Direct Deposit solution</a> helps you easily identify account holders without a direct deposit relationship or with deposits flowing to external accounts.
In addition, MX&rsquo;s <a href="https://www.mx.com/products/customer-analytics/">Customer Analytics</a> surfaces clear insights based on data to help you better target the right customers with the right message at the right time. With targeted segmentation and campaign tools, financial institutions can identify customers without direct deposit, tailor messaging, and deliver personalized offers that encourage setup and switching.
<h2>Driving Stronger Engagement&nbsp;</h2>
Customer engagement is a highly important, but often elusive priority for financial providers. Beyond using data to reach consumers with insights, engagement comes from giving consumers the tools and guidance to turn those insights into better financial decisions.&nbsp;
With this in mind, MX completely reimagined our <a href="https://www.mx.com/products/personal-financial-management/">Manage Money Dashboard</a> to make it more intuitive, actionable, and configurable. Now, the new Manage Money Dashboard is available for you to use to:&nbsp;
<ul>
<li style="font-weight: 400;" aria-level="1">Simplify how consumers interact with financial management tools</li>
<li style="font-weight: 400;" aria-level="1">Deliver the insights most relevant to them</li>
<li style="font-weight: 400;" aria-level="1">Help them understand their money in real-time</li>
<li style="font-weight: 400;" aria-level="1">Provide guidance, offers, and recommended next-best actions throughout the digital banking experience.</li>
</ul>
This is more than a budgeting tool. It&rsquo;s an intelligent, automated way to help consumers engage with their finances in a meaningful way.
<h2>Gaining Better Insights&nbsp;</h2>
Our new data sharing reports within <a href="https://www.mx.com/products/data-access/">Data Access</a> help you understand where customers are sharing their financial data beyond your institution. Without these insights, you can&rsquo;t see where customers are turning to other providers for solutions &mdash; and might be missing opportunities to better serve them and grow your business.&nbsp;
Our Live Data-Sharing Dashboard gives you real-time visibility into how your customers are permissioning and sharing their data. And, you gain access to customer data-sharing trends with new reports for current connections and connections over time &mdash; with easy export options for deeper analysis.
We&rsquo;ve also continued to make <a href="https://www.mx.com/blog/data-enhancement-upgrade/">updates to our Data Enhancement</a> solution to deliver clear, accurate data using machine learning.&nbsp;
<h2>Connecting the Dots</h2>
Everything we do is based on our ability to facilitate fast, reliable connections. That&rsquo;s why we&rsquo;ve made major improvements to our connectivity solutions to ensure seamless data flow and stronger performance. And, these enhancements are already making an impact &mdash; financial institutions using multiple MX products have seen a 30% increase in conversion rates.&nbsp;
The financial institutions that thrive aren&rsquo;t the ones with the most data, but the ones that know how to turn that data into action. These latest product innovations can help you&nbsp; turn raw information into real business impact &mdash; so you can make smarter decisions, deepen relationships, and drive meaningful outcomes. With the right tools, that data becomes your biggest advantage.
 For a deeper look into these latest updates and more, visit our <a href="https://www.mx.com/product-updates/2025/spring/">Spring Product Update page</a> or watch the <a href="https://www.mx.com/product-forums/harness-data-drive-growth/watch/">replay of our latest Product Forum</a>.

Solving Your Biggest Challenge: Putting Data into Action

MX had the privilege of sponsoring a table at Encircle’s Only Love Gala — which featured actress Kristin Chenoweth.

Kristin Chenoweth shared 4 life lessons for bettering the world at Encircle’s Only Love Gala.

Key Lessons from Actress Kristin Chenoweth at Encircle’s Only Love Gala

Financial wellness isn&rsquo;t just about money &mdash; it&rsquo;s about being able to afford the things that can help with mental and physical wellness as well. Did you know that 49% of LGBTQ+ youth that wanted mental health care were unable to receive it because they could not afford it, according to the <a href="https://www.thetrevorproject.org/state-reports-utah-2024/">Trevor Project</a>? <a href="https://encircletogether.org/">Encircle</a>, a nonprofit dedicated to providing resources to LGBTQ+ individuals, offers community programs, support groups, and therapy services at its Encircle homes to combat this challenge and more.
For the second year in a row, MX had the privilege of sponsoring a table at Encircle&rsquo;s Only Love Gala &mdash; an event filled with opportunities to donate, individuals sharing personal stories of Encircle&rsquo;s impact, and performances by musical guests. Kristin Chenoweth, known for her role as Glinda in Broadway's Wicked, shared words of wisdom as a self-proclaimed &ldquo;ally until the day [she] dies.&rdquo;
Here are the main takeaways from Chenoweth&rsquo;s message:
<h2>1. We Are All Lights</h2>
Chenoweth performed some of her most well-known songs throughout her time on stage and made a powerful point with &ldquo;We Are Light.&rdquo; She shared that all of us have the unique opportunity to use our own light to become positive influences, make a difference in others&rsquo; lives, and lift each other up.
<h2>2. When We Band Together, We Are Unstoppable</h2>
&ldquo;Alone, we can&rsquo;t do anything. But together, we can do everything,&rdquo; said Chenoweth. Standing up alone can often be difficult. But, when we gather together to stand for change, we can have an incredible impact. This is especially important when it comes to standing for those in historically underrepresented groups.
<h2>3. Take Pride in Who You Are</h2>
Chenoweth shared a personal experience of meeting and mentoring a young woman who was hopeful to follow in her footsteps &mdash; to land the Broadway role of Glinda. She offered her the advice coined by Oscar Wilde: Be yourself; everyone else is already taken.&nbsp;
While this young woman did not perform the role on Broadway, she did go on to achieve her dreams of playing Glinda in the major motion picture adaptation of Wicked. Chenoweth&rsquo;s advice to Ariana Grande shows the power of accepting our individual strengths and weaknesses, and valuing what makes us who we are.
<h2>4. Do Something That Matters</h2>
Chenoweth ended her remarks with a push for everyone to take part in things that matter. Our lives are short, so everyone should hone their passions into something that can make the world a better place. We all have the ability &mdash; and responsibility &mdash; to use our time, energy, and talents to create a meaningful change in the world
If you&rsquo;d like to learn more about Encircle&rsquo;s mission or how you can make a difference, visit <a href="http://encircletogether.org">EncircleTogether.org</a>.

4 Key Lessons from Kristin Chenoweth at the Only Love Gala

Key takeaways from the Experience Generation Next report on how to serve consumers of each generations in the coming years,

Read key highlights from Experian’s Generation Next report and how to meet consumer needs in the next decade and beyond.

Understanding Different Generational Customer Needs

Meeting the needs of customers requires financial providers to constantly evolve their offerings to address the shifting sands of the generational landscape. In an increasingly competitive landscape, it is no longer enough for financial providers to simply meet consumers where they are. Financial providers need to get there first &mdash; creating experiences that will deliver what consumers need, when they need them.&nbsp;
By anticipating upcoming financial milestones for consumers, financial providers can develop competitive strategies to win new customers and keep them for the long haul. Experian's latest <a href="https://www.experian.com/thought-leadership/business/generation-next-key-generational-insights" target="_self">Generation Next report</a> highlights key trends and milestones on the horizon for each generation:
<h2>Upcoming Generational Milestones&nbsp;</h2>
<img class="enlargeable" src="https://cms.mx.com/assets/d15ab0f1-cae8-46be-a228-be89ae129c43?width=1200&amp;height=615" alt="Image (31)" />
Gen Z Reaches Independent Credit Eligibility
At 18 years old, U.S. consumers are eligible to apply for credit independently &mdash;&nbsp;and the majority of Gen Z will reach this milestone in the next 5 years. More than 21 million Americans will turn 18 in the next 5 years, presenting a tremendous opportunity for banks and credit providers to establish new relationships with these consumers. How can you win their business? Focus on strong <a href="https://www.mx.com/products/mobile-banking/">mobile banking</a> experiences, seamless digital <a href="https://www.mx.com/use-cases/account-opening/">account opening</a> processes, and integrating with contactless payment options.&nbsp;
Millennial Home Buyers
Home ownership is a huge financial milestone and many Millennials are rapidly approaching the average age of first-time homebuyers &mdash; 38 years old. In order to successfully navigate this milestone, first-time Millennial home buyers will seek out new financial products and services to help them build their credit. In fact, credit-building products remain most popular among Millennials. By offering <a href="https://www.mx.com/products/financial-insights/">personalized insights</a> to guide them and products that help build their credit now, you can become a trusted financial provider that they turn to when it&rsquo;s time to buy a home.
Gen X Readies for Retirement
While most of Gen X is still several years away from retirement, the first wave of Gen X will reach the average age of retirement in the next 5 years. And, even for those further away from retirement, it is certainly on their mind. <a href="https://www.mx.com/research/financial-apps-fall-short/">MX research</a> shows that the top financial goal in 2025 for Gen X is to save for retirement. However, at the same time, Experian&rsquo;s report shows Gen X has the highest annual expenditures, spending more than $25,000 annually than their largely retired Baby Boomer counterparts. Financial providers have an opportunity to win Gen X customers by offering <a href="https://www.mx.com/products/personal-financial-management/">financial wellness tools</a> and insights that can help them track their spending today and save for the future.&nbsp;
Baby Boomers Require a Human Touch
Unsurprisingly, Baby Boomers are retiring at an earlier age and spend more on healthcare than their younger counterparts. More than half of this generation also still prefers brick and mortar bank branches to learn about new products and services &mdash; and places strong importance on human interactions when purchasing financial products (64% say it is extremely or very important). Financial institutions should consider these factors in how they approach targeted messaging and offers to support this generation, ensuring personalized insights and personal touches are at the forefront.&nbsp;
<h2>Understanding Trends Doesn&rsquo;t Replace Understanding Your Customers</h2>
With any trend reports like this, it is easy to make assumptions about what each generation will want and when they will want it. But, it is crucial to meet every assumption with data, otherwise your strategies will be designed for the customers you think you have rather than the ones you actually have. There is an important distinction between thinking you know your customer and actually knowing them.&nbsp;
Everyone is different. Every generation is different. But, more importantly, managing money is a very personal thing. Every person, regardless of generation, will view things slightly differently. This is why putting the data consumers choose to share with financial providers into action is so critical. And, consumers expect it. In fact, <a href="https://www.mx.com/research/financial-apps-fall-short/">our research shows</a>:
<ul>
<li style="font-weight: 400;" aria-level="1">55% agree they would give their financial provider access to more of their data if they knew it would result in a better experience.&nbsp;</li>
<li style="font-weight: 400;" aria-level="1">58% agree they expect their financial provider to leverage the data they have about them to personalize their experience.</li>
<li style="font-weight: 400;" aria-level="1">65% agree they expect financial institutions to use the data they have about them to provide them with actionable and clear insights about their finances.&nbsp;</li>
</ul>
Are you putting consumer-permissioned data to work for you and your customers? <a href="https://www.mx.com/product-forums/harness-data-drive-growth/" target="_blank" rel="noopener">Watch</a> or <a href="https://www.mx.com/blog/spring-product-forum-recap/" target="_blank" rel="noopener">read about</a> our recent Product Forum&nbsp;to see how MX can help.

Are You Evolving with Generations of Consumers? 

What is financial wellness and why does it matter? See how financial institutions can promote financial wellness.

Financial wellness is the ability to comfortably manage one’s finances and build better habits.

What Is Financial Wellness? Definitions, Benefits, and Examples

Families in the U.S. are wealthier than ever &mdash; with total family wealth quadrupling between 1989 and 2022, according to <a href="https://www.cbo.gov/publication/60807">a report from the Congressional Budget Office</a>. But this newfound wealth distribution has been anything but equal. The top 10% of households have 60% of the wealth.
<a href="https://www.mx.com/research/financial-apps-fall-short/">According to MX research</a>, 44% of consumers say they struggle to make ends meet. The stress of money and the widening wealth gap make prioritizing financial wellness more important now than ever before &mdash; for both consumers and their financial providers.
So what is financial wellness and why does it matter? This blog will answer every question about financial wellness and how financial institutions can help:
<ul>
<li><a href="#what-is-financial-wellness">What Is Financial Wellness?</a></li>
<li><a href="#examples-of-financial-wellness">Examples of Financial Wellness</a></li>
<li><a href="#financial-wellness-and-well-being">What Is the Difference Between Financial Wellness and Financial Well-Being?</a></li>
<li><a href="#benefits-of-financial-wellness">Benefits of Financial Wellness</a></li>
<li><a href="#financial-providers-promote-financial-wellness">How Financial Providers Can Promote Financial Wellness</a></li>
<li><a href="#mx-empowers-financial-wellness">How MX Empowers Financial Providers</a></li>
</ul>
<h2 id="what-is-financial-wellness">What Is Financial Wellness?</h2>
A quick search for &ldquo;what is financial wellness&rdquo; turns up many results &mdash; without a single agreed-upon definition.&nbsp;
<a href="https://www.mx.com/research/financial-apps-fall-short/">MX asked consumers how they define financial wellness</a> and, unsurprisingly, the results were widespread&nbsp; &mdash;&nbsp;and influenced by their past, present, and future. Financial wellness means different things to different people but each definition has a common thread: how well a person manages their money, if certain financial needs are met, and financial comfort. 
<img src="https://cms.mx.com/assets/82661b41-ad70-4db1-9465-d84cdc2bedfe?width=3891&amp;height=1698" alt="Asset 1@4x" />
The <a href="https://www.americanbanker.com/opinion/banks-should-embrace-new-tools-for-measuring-consumer-financial-health">Office of the Comptroller of the Currency</a> (OCC) gives a more practical definition of financial wellness: &ldquo;having stable day-to-day finances, resilience to withstand shocks, and security for the future.&rdquo;&nbsp;
Rolling all of these definitions into one, financial wellness is defined as the ability to comfortably manage one&rsquo;s finances.
Check out our blog <a href="https://www.mx.com/blog/consumers-define-and-measure-financial-wellness/">Metrics and Mindsets: How Consumers Define and Measure Financial Wellness</a> to learn more about how different genders and generations view financial wellness.
<h2 id="examples-of-financial-wellness">Examples of Financial Wellness</h2>
Because financial wellness is influenced by our past, present, and future, consumers can see practical application in each of these areas. Here are some examples of financial wellness practices for consumers:
<h3>Debt Management</h3>
Understanding our past money habits can help consumers on their journey towards financial wellness. Financial wellness can mean keeping debt at manageable levels or completely paying off debt.
<h3>Daily Spend Stability</h3>
Financial wellness is also about everyday money habits. Consumers should strive to live within their means. Budgeting and paying bills in full and on time can help consumers to control their daily spend &mdash; promoting financial wellness.&nbsp;
<h3>Emergency Preparedness</h3>
Nineteen percent of consumers find that being able to save for the future defines financial wellness, <a href="https://www.mx.com/research/financial-apps-fall-short/">according to MX</a>. Consumers can look towards the future with emergency preparedness in mind. Being proactive about savings, contributing to retirement accounts, and setting financial goals are examples of financial wellness.
<h2 id="financial-wellness-and-well-being">What Is the Difference Between Financial Wellness and Financial Well-Being?</h2>
Financial health, financial well-being, and financial literacy are all commonly used in conversations surrounding consumers and their ability to manage their finances effectively. Now that we&rsquo;ve defined financial wellness, what is financial well-being? Financial well-being is the ability for a person to effectively meet all of their financial obligations.&nbsp;
Financial wellness and financial well-being are 2 phrases can generally be used interchangeably. They all have the same goal, emphasizing the importance of proper financial management and how it can impact consumers.
<h2 id="benefits-of-financial-wellness">Benefits of Financial Wellness</h2>
Financial wellness is a powerful goal. It&rsquo;s a cause that will provide long-term benefits to consumers and financial institutions. Financially strong consumers lead to financially stronger businesses and communities. When people have the tools, resources, and knowledge to improve their financial health, it creates a win-win scenario for all parties involved.
Financial providers that invest in <a href="https://www.mx.com/use-cases/financial-wellness/">financial wellness tools</a> will be able to connect with their customers on a deeper level and contribute to higher levels of financial well-being. This translates to higher customer engagement, retention, and loyalty &mdash;&nbsp;and drives business growth, higher deposits, and long-term stability.&nbsp;
<h3>Benefits of Financial Wellness for Consumers</h3>
Able to Manage Day-to-Day Expenses
Financial wellness can benefit consumers right away. Fifty-five percent of consumers report that they are currently living paycheck to paycheck, <a href="https://www.mx.com/research/driving-engagement-for-consumers-research/">MX recently discovered</a>. Financial wellness can help consumers prepare for and handle upcoming everyday expenses to get out of the paycheck to paycheck cycle.
Prepare for the Future
Financial wellness can teach consumers important skills like saving, budgeting, and investing. Consumers that prioritize their financial health will become more prepared financially for unexpected life events. Ultimately, financial wellness will empower consumers to make more informed financial decisions that will have a lasting impact.
Mental and Physical Health
Fifty-one percent of consumers say money is their main source of stress, <a href="https://www.mx.com/research/financial-apps-fall-short/">according to MX research</a>. Financial wellness helps consumers to limit the stress caused by financial issues, offering them a greater sense of optimism and security. Because <a href="https://www.cuimc.columbia.edu/news/link-between-health-and-financial-well-being">health and financial well-being are connected</a>, investing in financial wellness can give consumers more fulfilling lives.
<h3>Benefits of Financial Wellness for Financial Providers</h3>
Stronger Customer Retention
There is rigorous competition within the financial services industry. So if a consumer doesn&rsquo;t like something about their financial provider, they are more than willing to find one that is a better fit for them. In fact, <a href="https://www.mx.com/research/the-missing-link/">MX found that</a> 57% of consumers said they&rsquo;d likely seek out a new financial provider if their current one couldn&rsquo;t deliver on these most wanted features. Financial providers must be willing to increase their service offerings so that consumers are more willing to stick around long term.
Increased Deposits
Banks, credit unions, and other financial providers that work to promote financial wellness will have consumers that are financially healthier, making them more likely to pay off their loans and increase their deposits.
Data-Driven Insights
Financial institutions that partner with consumers on their financial journeys will gain access to greater insights based on additional consumer-permissioned data. This data&rsquo;s power is two-fold. Banks will be able to better understand their customers, while also using that information to offer more relevant products and services that will help them to retain customers.
<h2 id="financial-providers-promote-financial-wellness">How Financial Providers Can Promote Financial Wellness</h2>
According to the <a href="https://finhealthnetwork.org/research/financial-health-pulse-2023-u-s-trends-report/">Financial Health Network</a>, 47% of unbanked households were considered financially vulnerable. Banks have the opportunity to turn the financially vulnerable population around through financial wellness promotion.
Financial providers should rethink how they are approaching financial wellness and its accessibility for their consumers. Thanks to today&rsquo;s advances in technology across the financial industry, financial institutions have easier access to the tools that promote financial wellness. There are various ways that providers can promote financial wellness:
Connect the Dots
Do your consumers know where their finances stand? Financial wellness is nearly impossible without full visibility into financial accounts. The majority of consumers have various financial apps, so switching between them is an inefficient way to fully understand their financial state. By implementing an <a href="https://www.mx.com/blog/what-is-open-banking/">open banking solution</a> to help consumers connect the dots across their various financial accounts, they&rsquo;ll gain a 360-degree view of their finances.
Leverage Data to Better Engage and Inform
Even centralized financial data can be messy and hard to understand at times. Financial institutions that prioritize <a href="https://www.mx.com/blog/what-is-data-enhancement/">data enhancement</a> will empower consumers to better understand their finances. Likewise, banks and credit unions will have more clarity into the data to tailor the right messages for the consumers at the right time.
Engage Through Personalization
Every consumer is different, so they should be treated that way. Understand who your customers are through their data and engage with them appropriately. Give your customers <a href="https://www.mx.com/products/financial-insights/">proactive insights</a> or nudges to better manage spending, pay down debt, or increase savings based on their account activity. These insights can empower your customers to recognize how they can make more informed financial decisions.
Nudge Consumers to Action
Your consumers are sharing high amounts of information with you. Use it to your advantage. Did they recently connect a new account? Have they opened up a mortgage? Could they benefit from a <a href="https://www.mx.com/case-studies/global-credit-union/winning-the-fight-for-deposits/">deposit switch</a>? With the right tools, you can understand more about your customers and act accordingly with targeted offers and services &mdash; helping you gain primacy.
<h2 id="mx-empowers-financial-wellness">How MX Empowers Financial Providers</h2>
<a href="https://www.mx.com/research/financial-apps-fall-short/">MX found</a> that 31% of consumers don&rsquo;t feel financial providers do enough to support their financial needs. What can they do to better meet customer expectations? Jane Barratt, MX Chief Advocacy Officer, offered the solution when she said, &ldquo;Data, or the lack thereof, can make or break financial wellness.&rdquo;
MX helps financial institutions connect, analyze, engage, and act on <a href="https://www.mx.com/blog/what-is-consumer-permissioned-data/">consumer-permissioned data</a> to create better customer experiences. MX&rsquo;s suite of <a href="https://www.mx.com/use-cases/financial-wellness/">financial wellness tools</a> can help you make the most of your financial data. Discover <a href="https://www.mx.com/case-studies/verabank/">how MX helped VeraBank transform financial wellness</a> across its customer base for a 65% increase in engagement.

What Is Financial Wellness and Why It’s Not Just Important for Consumers

Check out these recommendations for what to keep in mind when standing up an open banking API.

See how MX’s Data Access solution can support your open banking future!

As <a href="https://www.mx.com/blog/what-is-open-banking/">Open Banking</a> adoption continues to accelerate, financial institutions of all sizes are exploring the right approach to standing up and maintaining open banking APIs.&nbsp;
MX has been a leader in <a href="https://www.mx.com/blog/what-is-open-finance/">Open Finance</a> and <a href="https://www.mx.com/blog/what-is-consumer-permissioned-data/">consumer-permissioned data</a> sharing for more than a decade, working with financial providers and fintechs to implement APIs that enable the permissioned flow of data. Here are three things to consider when standing up an open banking API:
<h3>1. Data is a Two-Way Street</h3>
Financial institutions have traditionally had an aversion to sharing their customers&rsquo; financial data, often seeing it as the loss of a competitive edge. But, that mindset is outdated as open banking adoption accelerates. The flow of data can &mdash; and should &mdash;&nbsp;be a tide that rises all boats.&nbsp;
By enabling the two-way flow of data, financial institutions are able to better understand customer needs, streamline processes, and deliver better products and services. This includes everything from empowering better and faster onboarding through instant account verification to generating relevant and actionable insights that can improve a consumer&rsquo;s financial life.&nbsp;
Financial institutions shouldn&rsquo;t be afraid of data leaving their institution. Instead, they should think about the value they gain as a data provider &mdash;&nbsp;better insights into where consumers are turning for their financial needs outside of their organization.
The flow of data along consumer-permissioned channels increases insights and intelligence that can be used by financial providers on both ends of the exchange.&nbsp;
<h3>2. Don&rsquo;t See Compliance as a Hassle</h3>
Compliance and third-party risk management teams at a financial institution are integral to effectively standing up an open banking API. However, these stakeholders are often brought into the process too late.&nbsp;
Compliance and risk management need to be considered from the beginning. This will facilitate alignment across departments, streamline due diligence processes by engaging early and often, and ensure that the end result is a more secure way for consumers to manage their data.&nbsp;
More broadly, as <a href="https://www.mx.com/blog/cfpb-dodd-frank-section-1033/">open banking regulations</a> take shape, it could be easy for financial institutions to view compliance obligations as a hassle or hindrance. However, there are opportunities for financial institutions that see compliance as more than checking a box. For example, consumers want their providers to know them but, most financial institutions are missing key details on where consumers share data. Open banking data gives you better insights about competitor products that your customers utilize and enables you to create precise targeting and compelling offers.&nbsp;
<h3>3. Keep Consumers at the Center</h3>
Consumers own their financial data and should have the ability to control who has access to it. <a href="https://www.mx.com/research/financial-apps-fall-short/">MX research</a> confirms this &mdash; 80% of consumers agree it is important for them to know and manage who has access to their financial data. Financial providers need to keep this perspective at the center of their API implementations.&nbsp;
Whether building or buying an API, financial institutions should focus on facilitating secure, seamless connections that allow consumers to connect to a broad range of banks and fintechs, dynamically revoke access to their data, and educate them on the values and risks associated with sharing their data with third parties.&nbsp;
Ultimately, standing up a successful open banking API means embracing the opportunities that Open Banking presents rather than merely meeting obligations.

Opportunity over Obligation: Considerations for Standing Up an Open Banking API

Community banks are cornerstones of local economies and provide a personalized touch to essential financial services.

MX recently submitted a comment letter to the U.S. House Financial Services Committee in response to its "Make Community Banking Great Again" principles. 

Why Community Banks Matter and Balancing Policies

At MX, we deeply value the critical role that community banks play in the financial well-being of individuals and the growth of small businesses across the nation. Community banks and credit unions are not just places to store money &mdash;&nbsp;they are cornerstones of local economies and provide a personalized touch to essential financial services, fostering strong relationships that are particularly vital in underserved areas. Their dedication to understanding and meeting the unique needs of their communities is fundamental to a vibrant and inclusive financial system.
That's why we recently submitted a comment letter to the Honorable Members of the House Financial Services Committee in response to their recently published "Make Community Banking Great Again" principles.&nbsp;
For the past 14 years, MX has been a proud partner to numerous community banks and credit unions across the United States. Their survival, economic prosperity, and ability to effectively serve their customers are of paramount importance to us. But, community banks are disappearing through consolidation, acquisition, or closure.&nbsp;
Our mission to build financial strength for individuals, communities, and the world becomes harder in local communities that rely on these community banks to support their economy, small businesses, and citizens. We have a vested interest in ensuring the regulatory and economic landscape enables them not just to persist, but to flourish in an increasingly competitive environment.
Our letter highlighted several key areas where we believe thoughtful policy and regulatory approaches can significantly benefit community banks and the communities they serve. Here&rsquo;s a summary of the key points we conveyed to the Committee:
<h2>1. The Importance of Tailored Regulation</h2>
We strongly support the Committee's principle advocating for the re-establishment of tailoring in prudential regulation and supervision. A one-size-fits-all approach fails to recognize the fundamental differences between community banks and large, complex institutions, often disproportionately burdening smaller banks and forcing them to divert resources from their core mission.
We emphasized that regulatory scrutiny should be commensurate with the actual risk posed to consumers. We highlighted the significant differences between non-secure data sharing practices that can lead to breaches and fraud, and the <a href="https://www.mx.com/products/data-access/">secure, permissioned data access</a> facilitated by MX. Our technology empowers consumers to control their data, utilizing secure APIs that enhance security and enable personalized financial experiences. We urged regulators to recognize this fundamental difference in risk profiles when crafting regulations.
<h2>2. Fostering Innovation Through Clear Supervisory Expectations</h2>
MX wholeheartedly agrees with the Committee's emphasis on regulators being open to innovation while upholding safety and soundness, and ensuring they possess the technical skills for effective supervision. Innovation, particularly through partnerships with fintech companies like MX, is crucial for community banks to modernize their offerings and remain competitive.
Clear and consistent regulatory guidance regarding third-party relationships, including those with fintechs, is vital for fostering responsible innovation. As the House Financial Services Committee recently pointed out in a <a href="https://financialservices.house.gov/uploadedfiles/2025-03-28_interagency_letter_1.pdf">letter</a> to Federal banking agencies, lack of clarity in this area can stifle the adoption of new technologies. We also highlighted the increasing need for regulators to develop expertise in emerging technologies like <a href="https://www.mx.com/blog/ai-in-financial-services/">artificial intelligence (AI)</a> to provide effective oversight that encourages innovation while protecting consumers.
<h2>3. Periodic Review of Cumulative Regulatory Impact</h2>
We support the call for federal prudential regulators to conduct periodic reviews of the cumulative impact of their regulations. Regularly assessing the overall effects of the regulatory landscape can identify unintended consequences, inefficiencies, and areas for improvement.
These reviews should specifically address any overlapping or conflicting requirements across different regulatory agencies that can lead to unnecessary costs and compliance challenges for community banks. Regulatory clarity is paramount for promoting commercial growth and fostering innovation, allowing community banks to allocate resources more effectively towards serving their customers and communities.
<h2>4. Balancing Efficiency and Competition in Bank Merger and Acquisition Review</h2>
MX recognizes the importance of a timely and efficient regulatory review process for bank merger and acquisition applications. However, we also stressed the critical need to balance efficiency with the potential adverse effects on competition that can arise from increased consolidation within the banking sector.
The significant decline in the number of community banks over the past two decades underscores the importance of carefully considering the impacts of consolidation, especially given the vital role these institutions play in serving small businesses and local communities. While a 120-day timeframe for review may enhance efficiency, it is crucial that regulators have sufficient time to thoroughly assess the potential impact on competition, small business customers and the continued viability of community banks.
<h2>Looking Ahead</h2>
MX appreciates the House Financial Services Committee's focus on the challenges and opportunities facing community banks. These institutions are an indispensable part of our financial ecosystem, and their continued evolution and success is vital for the well-being of communities across the nation.
We remain committed to being a supportive voice and a valuable resource in ongoing discussions about how to improve the economic and innovation landscape for community banks. By working together, policymakers, regulators, and industry stakeholders can create an environment where community banks can thrive, continue to serve their communities effectively, and embrace innovation to meet the evolving needs of their customers.

Why Community Banks Matter — and the Need for the Right Policy Approach

A 101 dive into what customer segmentation is and how if applies to banking and financial services.  

Customer segmentation is the process of dividing a customer base into smaller groups to better understand the trends, habits, and needs of each group.

What Is Customer Segmentation in Banking?

Consumers have grown to expect personalized and tailored experiences from their financial providers. And, they are ready to share their data in exchange for more relevant experiences.
In fact, MX research found that <a href="https://www.mx.com/research/financial-apps-fall-short/">55% of U.S. consumers</a> agreed they would give their financial provider access to more of their data if they knew it would result in a better experience. But, if they share their data, they expect financial providers to actually use it.&nbsp;&nbsp;
<blockquote>
65% of U.S. consumers agree they expect their financial institutions to use the data they have on them to provide them with actionable and clear insights about their finances.
</blockquote>
One-size-fits-all approaches don&rsquo;t meet this expectation. Financial providers need to leverage the data that consumers share to create effective customer segmentation to meet their unique needs.&nbsp;
In this post, we&rsquo;ll cover:
<ul>
<li><a href="#what-is-customer-segmentation">What Is Customer Segmentation?</a></li>
<li><a href="#why-is-customer-segmentation-important">Why Is Customer Segmentation Important in Banking?</a></li>
<li><a href="#benefits">Benefits of Customer Segmentation</a></li>
<li><a href="#mx-support">How Does MX Support Customer Segmentation?</a></li>
</ul>
<h2 id="what-is-customer-segmentation">What Is Customer Segmentation in Banking?</h2>
Customer segmentation is the process of dividing a customer base into smaller groups using a variety of shared characteristics. It helps businesses better understand the trends, habits, and needs of each group.&nbsp;
With customer segmentation, businesses can target and message their customers based on demographic, geographic, psychographic, and/or behavioral characteristics. By segmenting customers according to specific needs, preferences, and behaviors, businesses can more effectively tailor their marketing, products, and services. It helps companies know and reach the right customer base with the right message, product, or service at the right time. Consumers can occupy multiple segments and segments change and evolve over time as consumer behavior and needs change.&nbsp;
Within banking, <a href="https://www.mx.com/blog/what-is-consumer-permissioned-data/">customer-permissioned financial data</a> enables financial institutions and fintechs to segment customers based on characteristics such as spending affinities, risk tolerance, credit history, income, spending and savings habits, investments, financial management behaviors, etc.&nbsp;
<h2 id="why-is-customer-segmentation-important">Why Is Customer Segmentation Important in Banking?</h2>
Customer segmentation is a valuable tool for any industry, but none more so than financial services. The <a href="https://www.mx.com/money-experience/">money experience</a> is deeply personal. Each consumer has a different set of circumstances, goals, and life moments that influence the financial products and services they want and need.&nbsp;&nbsp;
Customer segmentation allows financial providers to deliver more personalized messages, offers, and experiences at scale for consumers. And, with the rise of <a href="https://www.mx.com/blog/what-is-open-banking/">Open Banking</a>, financial providers have access to more consumer-permissioned data than ever to understand customers on a deeper level and segment accordingly.&nbsp;&nbsp;&nbsp;
<h2 id="benefits">Benefits of Customer Segmentation in Banking</h2>
Customer segmentation improves financial products and services in a variety of ways that benefit both the consumer and business.&nbsp;
<h3>Benefits for Consumers</h3>
Some examples of benefits customer segmentation provides consumers are:
1. More Personalized Products and Services
Segmentation ensures that financial institutions offer products that suit the specific needs and goals of different consumer groups. For instance, consider the needs of different generations: Gen Z customers who&rsquo;ve recently graduated may benefit from an offer to refinance their student loans while Baby Boomers who have been out of school for some time would likely not benefit from this same offer.
The more data a financial provider has, the more they can use customer segmentation to tailor products and services to meet specific needs. This means consumers get exactly what they need, instead of being overwhelmed with options that don&rsquo;t apply to them.
2. Increased Customer Satisfaction
When financial institutions understand a customer&rsquo;s needs, behavior, and preferences, they can provide more relevant experiences, which improves customer satisfaction and loyalty. Consumers may receive tailored financial advice, faster and more informed responses to questions, and better services that support a consumer&rsquo;s financial goals.&nbsp;
3. Improved Financial Advice
Navigating finances is challenging and many consumers struggle to do so on their own. <a href="https://www.mx.com/research/financial-apps-fall-short/">MX research</a> found 50% of consumers see money as their main source of stress and 44% say they struggle to make ends meet. Whether in boom or bust, consumers want their financial providers to offer personalized advice on next steps. Customer segmentation helps financial providers offer more relevant advice to a wide range of customers.&nbsp;&nbsp;
4. More Relevant Offers and Promotions
Instead of receiving generic marketing offers, consumers benefit from receiving deals and promotions that actually make sense for them. If you&rsquo;re a recent college graduate, for example, you might get offers for first-time homebuyer loans or low-fee credit cards, rather than irrelevant offers targeted at different groups.
<h3>Benefits for Financial Providers</h3>
Examples of the benefits of customer segmentation for financial institutions are:
1. More Effective Marketing and Communications&nbsp;
Even a financial provider with the best products and services will still struggle if they fail to put them in the hands of the consumers at the opportune moment. By marketing specific and tailored campaigns based on customer segmentation data, financial providers get relevant and actionable insights into the hands of their customers when they need it.&nbsp;
2. Boost Cross-Selling Opportunities
Segmentation allows financial institutions to identify opportunities for cross-selling relevant products to their customers. As customers progress in their lives and financial journeys, they move through different segments and their needs change. By understanding how individuals progress through segments, financial providers can meet consumers where they are and provide actionable insights for their customers&rsquo; next steps.&nbsp;
3. Improved Engagement, Retention, and Loyalty
Personalized services, relevant product offerings, and proactive customer support help build stronger relationships, which in turn increases customer loyalty. Satisfied customers are more likely to engage and remain with the institution for the long term, increasing satisfaction and reducing churn.
4. Optimized Product Development
By analyzing customer segments, financial institutions can identify gaps in the market and develop new products tailored to specific groups. By actively assessing customer segmentation data and looking for trends and changes, financial institutions can have a head start on where the industry is headed and be the first to market with new products and services that will serve customers in the future.&nbsp;
<h2 id="mx-support">How Does MX Support Financial Institutions with Customer Segmentation?</h2>
At MX, we believe that by leveraging consumer-permissioned data, we can help empower the world to be financially strong. This belief is reflected in the products and tools we create to help financial providers deliver better money experiences to consumers.&nbsp;
For instance, our <a href="https://www.mx.com/products/customer-analytics/">Customer Analytics</a> solution enables financial institutions to surface deeper insights about their customers with world-class data, clear segmentation, and unified data sets. It combines consumer-permissioned and enhanced transaction data into a centralized, comprehensive set of intelligent models, dashboards, and analytics tools all of which can be easily embedded into marketing automation platforms and CRMs. Our approach enables a new way to retrieve data and break analytics down to a set of actionable attributes.
<blockquote>
"...Having the data is just the beginning &mdash; you have to do something with it. Those who can effectively drive that next action will see tremendous results." &mdash;<a href="https://thefinancialbrand.com/news/deposits/most-financial-institutions-have-a-data-problem-not-a-deposit-problem-187874?mx-content-portal">&nbsp;Billy Gast</a>, Senior Director of Mobile and Experiences Products at MX
</blockquote>
MX also helps financial providers transform that data into action &mdash; with personalized insights, proactive recommendations, and more.

What Is Customer Segmentation? Benefits, Examples in Banking

MX is working with Candescent and Gemini AI models on a new proof of concept to provide personalized experiences for consumers.

MX works with Candescent and Gemini AI models on a new proof of concept to enable faster, easier personalized messages to consumers. 

Personalization at Scale with MX, Candescent, and Gemini AI Models

Generic marketing messages often fail to resonate with customers &mdash;&nbsp;alienating them with impersonal, irrelevant offers instead of driving them to take action. In fact, half of consumers report receiving marketing emails or direct mail from financial institutions at least once a month or more often. However, the majority of consumers (67%) have not taken action from any, <a href="https://www.mx.com/research/driving-engagement-for-consumers-research/">according to MX&rsquo;s research</a>.&nbsp;
Financial providers that seek to strengthen relationships and build trust with customers must deliver highly-tailored messages to each person at the right time. This means financial providers must truly understand where each customer is in their financial journey in order to personalize their experience.
However, getting a clear picture of what consumers want &mdash;&nbsp;and translating that into high-impact messaging and marketing campaigns &mdash;&nbsp;isn&rsquo;t always easy. Nearly every organization has a complicated diagram of how they&rsquo;re piecing disparate data sources together across different tools to try and create relevant marketing and messaging.&nbsp;
MX is working with Candescent and Gemini AI models on a new proof of concept. Soon, financial providers will be able to use Candescent as a singular solution with new integrations to MX&rsquo;s <a href="https://www.mx.com/products/customer-analytics/">Customer Analytics</a> solution and Gemini models. They will also be able to use Gemini for Google Workspace to streamline tasks and workflows.&nbsp;
Here&rsquo;s how it works:
<h2>Making Sense of the Data&nbsp;</h2>
Using MX&rsquo;s Customer Analytics, financial institutions can surface deeper insights about their customers with world-class data, clear segmentation, and unified data sets. Customer Analytics combines consumer-permissioned and enhanced transaction data into a centralized, comprehensive set of intelligent models, dashboards, and analytics tools all of which can be easily embedded into marketing automation platforms and CRMs. Our approach enables a new way to retrieve data and break analytics down to a set of actionable attributes.
<h2>Simplifying Campaign Management</h2>
With a better understanding of each segment composition, financial providers are then able to leverage Gemini models to generate promotional images or other marketing assets using artificial intelligence &mdash; all embedded within the Candescent Promotion Suite. This allows organizations to go from insights to execution quickly and efficiently.&nbsp;
<img src="https://cms.mx.com/assets/289e8a15-f27c-4dd1-90d4-4017df9f3f2f?width=1920&amp;height=807" alt="MX and Candescent Proof of Concept" />
Speed to market is imperative and financial providers must be able to communicate with each customer at the moments that matter most. What was a traditionally cumbersome process is now centralized, intelligent, and seamless so financial services organizations can reach their customers with the right message faster.&nbsp;&nbsp;
This exclusive solution is only available to Candescent clients and is expected to be available in early 2025.

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