Financial institutions can grow deposits and increase engagement through building consumer trust.

The Good, the Bad, and the Broken: How Money Experiences Make or Break Consumer Trust

Financial service providers should focus on these four key areas to build consumer trust: experiences, transparency, security, and outcomes.

How Money Experiences Make or Break Consumer Trust | MX Blog

Financial institutions are facing declining deposits, shrinking revenue, and waning user engagement and adoption. The solution to growing deposits and increasing engagement lies in building consumer trust.
As we&rsquo;ve said before, <a href="https://www.mx.com/blog/do-consumers-trust-financial-services/">trust is hard earned and easily lost</a>. Raymond den Hond, MX Chief Commercial Officer for Partners recently shared <a href="https://www.mx.com/webinars/how-money-experiences-make-break-consumer-trust/watch/">how to build and maintain trust across 4 key components</a>:&nbsp;
Experiences. Consumers expect their financial service providers to deliver beyond the basic functions of viewing their transactions and statements. In fact, 66% of consumers expect their bank or credit union to know them in depth and help them understand how to take care of their financial well being. Data is what powers that personalized money experience and actionable insights.&nbsp;
Transparency. Financial service providers should ensure consumers have visibility and control over who has access to their financial data and how it is being used. Without reliable and secure data access, consumers have limited insight into what is really going on in their financial lives.
Security. Consumers must trust that their financial data is safe, secure, and that their money is being handled responsibly by their financial institutions. This means financial institutions must enact robust security measures to keep consumer data safe. Context is also incredibly important when it comes to security. When transactions are clear and categorized, it drives better trust in terms of the security aspects around financial data.&nbsp;
Outcomes. Consumers are looking to their financial service providers to help them achieve and maintain financial wellness. By providing financial wellness tools and offering a consolidated view of their financial accounts, financial institutions are able to drive timely actionable insights for consumers that are relevant to them.&nbsp;

To build consumer trust, financial institutions should focus on these four core areas.

How Money Experiences Make or Break Consumer Trust

Want to learn how we can help you with your open finance strategy?

Want to learn how MX can help you with your open finance strategy?

Open Finance is the next step beyond Open Banking, enabling access and sharing of consumer data to even more financial products and services — not just banking.

What is Open Finance? Definitions, Benefits, and APIs

Consumers are looking to financial providers for help improving their financial health. Our research reveals what matters most.

What else are consumers expecting from their financial service providers?

Our latest research revealed consumers' expectations for financial service providers to deliver a better money experience and the aspects that matter most.

Consumer Expectations for a Better Money Experience | MX Blog

Today&rsquo;s consumer money experience has become increasingly fragmented and consumers are looking to their financial service providers for help. <a href="https://www.mx.com/research/what-consumers-want-from-financial-providers/">Thirty-nine percent of consumers believe financial providers have a responsibility to provide guidance toward becoming financially strong</a>. This jumps to 58% for Gen Z and 56% for Millennials.
While technology advancements have made life easier in a lot of ways, the same isn&rsquo;t necessarily true when it comes to managing finances. It means more financial accounts, more apps, more usernames and passwords, and more work for consumers.
MX&rsquo;s latest research revealed a few key consumer behaviors that financial institutions and fintechs can leverage to create easier, more seamless money experiences:&nbsp;
Easy and Effortless. Consumers are already overwhelmed with the number of usernames and passwords they need to remember and their financial apps are no exception. To combat this, 39% of consumers say they use the same login credentials on multiple apps so that it&rsquo;s easier to remember. And, 51% of consumers use biometric logins when they are an option, removing the need to remember any credentials.&nbsp;
Safe and Secure. At the same time, 60% of consumers prefer multi-factor authentication when managing their money on a financial app. Coupled with the above, fintechs and financial institutions have to strike the balance between security and convenience.
Connected and Complete. With multiple accounts spread across financial providers, it can be difficult for consumers to get a comprehensive look at their finances. That&rsquo;s why 29% of consumers have connected multiple financial accounts into one app to simplify how they manage their finances. This is even higher in younger generations with 37% of Gen Z and 46% of Millennials using an app for a consolidated view of their accounts. The ability to connect accounts gives consumers a more complete picture of their finances, empowering them to make better financial decisions and reach their goals.
Personalized and Proactive. Consumers are increasingly looking to their financial providers for proactive and personalized guidance to help them reach their financial goals. The good news is that nearly half&nbsp; of consumers (45%) feel their experience with finance-related mobile apps is personalized to them. The more fintechs and financial institutions can offer personalized experiences, the more trust they can build with their customers.

Technology advancements have complicated the money experience. Our latest research uncovers what matters most to consumers. 

Consumer Expectations for a Better Money Experience

Our latest survey of 1,000+ U.S. consumers shows current attitudes on financial wellness. 

What is Financial Wellness? It’s Not Today’s Consumer Money Experience

MX’s latest consumer boils down how consumers define financial wellness, and current spending and saving attitudes and behaviors. 

What Financial Wellness Means: Consumer Attitudes Today | MX Blog

Financial wellness can mean different things to different people. But, according to our latest MX survey of 1,000+ U.S. consumers, it boils down to one essential thing &mdash; being able to live without worrying about money. However, the last few years &mdash;&nbsp;from the COVID-19 pandemic to rising interest rates to the recent collapse of several financial institutions &mdash; have brought a whirlwind of challenges that threaten their financial security. Here&rsquo;s a few key stats that show how consumers feel today:&nbsp;
Somewhat Optimistic for the Future: Forty-four percent agree they feel confident their financial situation is better than 12 months ago. This is even higher among younger generations (Gen Z: 56%, Millennials: 51%), and those who identify as Asian, Black, Hispanic, or other (50% compared to 39% of those who identify as White).&nbsp;
Covering Costs: When asked what statement best describes their current financial situation, nearly one-third of consumers say they are confident in their ability to cover any expenses, with Baby Boomers (41%) and Millennials (34%) most confident. That said, 26% of respondents said they are worried about how they would cover unexpected expenses and 13% say they do not always have enough to pay for everyday necessities.&nbsp;
Money Worries: Forty-eight percent of respondents say money is a source of stress for them and thinking about money makes them anxious (47%). Additionally, 76% of respondents agree they are worried about rising costs due to inflation. And, in the face of a potential recession, consumers are taking steps to prepare:&nbsp;&nbsp;
<ul>
<li style="font-weight: 400;" aria-level="1">40% of consumers agree they are depositing less money into savings or investment accounts in the face of a potential recession.&nbsp;</li>
<li style="font-weight: 400;" aria-level="1">At the same time, 45% say they are not currently contributing to a 401(k) account.&nbsp;</li>
<li style="font-weight: 400;" aria-level="1">But, they are not yet moving money away from investment accounts. Only 24% agree they have moved money away from investment accounts due to market fluctuations.</li>
<li style="font-weight: 400;" aria-level="1">41% of consumers agree they are carrying a balance month-to-month on their credit cards. This is highest among Millennials (44%) and Gen X (48%).</li>
<li style="font-weight: 400;" aria-level="1">65% agree they have cut items from their budget to save money. This is highest among Gen X at 72%.</li>
</ul>
2023 Financial Goals: When asked about their top financial goals for the year, 42% of respondents are saving for a large purchase or retirement and 21% are paying off debt.&nbsp;
Check out the full research report below for more.&nbsp;

Financial wellness can mean different things to different people. But, according to our latest MX survey of 1,000+ U.S. consumers, it boils down to one essential thing — being able to live without worrying about money. 

What Financial Wellness Means for Consumers

Where should financial institutions focus their energy first? We think investing in Open Banking should be the first priority. 

Open finance APIs can create the foundation to support a more secure, seamless instant payments ecosystem, accelerating the adoption of FedNow, RTP, and more.

Three Ways Open Finance Can Support Adoption of FedNow Payments

Contributed by David Whitcomb, Vice President of Product, MX
Last month, the Federal Reserve launched its new FedNow Service for instant payments. While any financial institution can use FedNow to instantly transfer money for their customers at any time of day, on any day, <a href="https://ffnews.com/newsarticle/paytech/the-federal-reserve-announces-that-its-new-system-for-instant-payments-the-fednow-service-is-now-live/">only a small fraction of institutions have signed up to be early adopters</a>. This means that for a system that requires both the sending and receiving institution to be signed up, actually sending a FedNow transaction in these early days will be like finding a needle in a haystack.&nbsp;
So what will it take to accelerate adoption of FedNow? Should financial institutions focus their energy here first?&nbsp;
We think investing in Open Banking and Open Finance should be the first priority. Open finance APIs can create the foundation to support a more secure, seamless instant payments ecosystem. Here&rsquo;s why: Open Finance Ensures More Secure, Reliable Connections: Current data-sharing methods like screen scraping, put a customer at higher risk unless careful security protocols are in place. Screen scraping requires consumers to share their credentials (username and password) and places a heavy technical burden on bank infrastructure, which creates unstable customer experiences and a lack of transparency for the end user.&nbsp;
With Open Banking and Open Finance, APIs allow consumers to share and access their transaction data without the need to provide usernames and passwords &mdash; or in the case of making a payment, account details to send money. The best direct connections replace credentials with tokens, delivering higher levels of security, faster speeds, and higher connection success rates.
Open Finance Improves Data Accuracy: Leveraging APIs can also ensure higher data quality by eliminating the need for manual data entry by the consumer. Account data and account owner information &mdash;&nbsp;as well as available account balances &mdash; can be more quickly verified using Instant Account Verifications, account owner verifications, and real-time balance checks. Screen scraping can provide multiple options for account numbers, and API based sharing ensures the right account number is used.
Open Finance Helps Support Fraud Reduction Efforts: Faster payments mean faster fraud. In fact, <a href="https://home.treasury.gov/news/press-releases/jy1530">Assistant Secretary for Financial Institutions Graham Steele from the Department of Treasury recently remarked</a>, &ldquo;With the ability to move money instantaneously between accounts, we face potential fraud scenarios that are more complex and intricate than in traditional deferred settlement payment systems. To mitigate this, we need to consider how we can harness technology and policy to help mitigate risks.&rdquo;
Financial service providers are not just custodians of consumers&rsquo; money but also custodians of data and trust. Open finance APIs enable greater insights into the financial lives of consumers, making&nbsp; it easier to spot anomalies and potential fraud, reducing risk for both the organization and customer.
The bottom line is that leveraging open finance APIs can give institutions greater confidence that payments will be more successful than those that use riskier methods like screen scraping and microdeposits.

What will it take to accelerate adoption of FedNow? Where should financial institutions focus their energy first? We think investing in Open Banking and Open Finance should be the first priority. Open finance APIs can create the foundation to support a more secure, seamless instant payments ecosystem. 

Open Banking or FedNow: Where to Start? 

Consumers want help managing their money. There’s no shortage of budgeting tools available, so why don't most consumers use them?

How do we make PFM accessible to the masses?

Financial service providers should focus on core jobs to be done, and predictable, repeatable insights to create PFM tools that drive engagement and better outcomes.


4 Imperatives for PFM Tools | MX Blog

Consumers are increasingly <a href="https://www.mx.com/research/what-influences-where-consumers-choose-to-bank/">looking to financial service providers</a> for help managing their money and building financial strength. There&rsquo;s no shortage of personal financial management tools and budgeting apps available, so why do most consumers not use them?&nbsp;
Very few consumers actually want to take a hands-on approach to managing their finances. The majority of the market wants to improve their finances and make better decisions with their money, but don't want to do the work. They want automation, not spreadsheets. They want nudges, not analysis.&nbsp;
So how do we create a PFM tool that appeals to both spreadsheet-loving super users and those who want a simpler approach?&nbsp;
<a href="https://www.mx.com/products/personal-financial-management/">Personal financial management (PFM) tools</a> designed for the majority of consumers should be built with these 4 imperatives in mind:
<ol>
<li style="font-weight: 400;" aria-level="1">Understand consumers are already anxious. <a href="https://www.cnbc.com/2023/07/31/61percent-of-americans-live-paycheck-to-paycheck-even-as-inflation-cools.html">More than half of Americans (61%) are living paycheck to paycheck</a> and <a href="https://www.cnbc.com/2023/04/11/70percent-of-americans-feel-financially-stressed-new-cnbc-survey-finds.html">70% of Americans are stressed about their personal finances</a>, according to CNBC. Budgeting and PFM tools shouldn&rsquo;t just be a reminder of how far behind consumers may be on their financial goals. Financial institutions should focus on balancing reminders with reassurance and support to create a better experience.&nbsp;</li>
<li style="font-weight: 400;" aria-level="1">Get good at the basics. What questions do consumers actually want help answering? According to <a href="https://www.mx.com/research/what-influences-where-consumers-choose-to-bank/">MX&rsquo;s most recent research,</a> consumers want to know how much they can put toward debt or savings (22%), if they&rsquo;re spending more than they should (21%), and how to cut expenses (17%). Make sure consumers know what they need to know &mdash; when they need to know it. </li>
<li style="font-weight: 400;" aria-level="1">Utility wins the race. While novelty may be tempting, it&rsquo;s often short-lived. Long-term adoption relies on how useful the technology proves to be to consumers. If it doesn&rsquo;t meet consumer&rsquo;s essential needs &ndash; how to save, how to pay off debt, how to cut expenses &ndash; any excitement over flashy features will eventually fade, leaving consumers still looking for help.</li>
<li style="font-weight: 400;" aria-level="1">Make it easy. Minimizing the effort from consumers also <a style="font-family: Inter, -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Helvetica, Arial, sans-serif, 'Apple Color Emoji', 'Segoe UI Emoji', 'Segoe UI Symbol', serif;" href="https://www.mx.com/product-forums/driving-adoption-and-engagement/watch/">increases adoption</a>. For instance, the more cumbersome and time consuming it is for consumers to find what they need, the more likely they are to give up and not return. PFM tools should place the most common actions and information in the most prominent locations to provide a repeatable, predictable experience for consumers to understand and manage their finances.</li>
</ol>
What&rsquo;s the bottom line? Financial institutions, fintechs, and big techs need to enable lasting behavior changes with easy-to-use tools and actionable insights that work for their life. Those who get PFM right will win, serve, and retain consumers for the long-term.

Financial providers who get PFM right will win, serve, and retain consumers for the long-term.

4 Personal Financial Management Imperatives

Open Finance, by nature, raises the bar for financial data sharing security standards. 

See if your security systems are ready for Open Finance

Open Finance can help safeguard consumer financial data and mitigate risk from account openings and account logins to account aggregation and day-to-day financial management.

4 Ways Open Finance Supports Security | MX Blog

Being a trusted steward of money is no longer enough for financial institutions and fintechs to meet the needs of consumers. As fraud, data breaches, and scams continue to hit record highs, financial providers must also be a trusted steward of personal data and even trust itself.&nbsp;
Security is at the core of safeguarding consumer data and maintaining trust for the long term. <a href="https://www.mx.com/blog/what-is-open-finance/" target="_self">Open Finance</a> can help protect consumer data while giving consumers control over access to their personal financial data. Let&rsquo;s look at how Open Finance can potentially enhance processes and systems throughout the money experience to help mitigate risk.&nbsp;
1. Account Opening is Faster and More Secure
<a style="font-family: Inter, -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Helvetica, Arial, sans-serif, 'Apple Color Emoji', 'Segoe UI Emoji', 'Segoe UI Symbol', serif;" href="https://javelinstrategy.com/press-release/identity-fraud-losses-total-52-billion-2021-impacting-42-million-us-adults">New account fraud increased by 109% in 2021</a>, according to Javelin Strategy &amp; Research. At the same time, consumers are quick to bail if the account opening process is too cumbersome. This makes the account opening process a critical touchpoint for both security and a business&rsquo;s bottom line. Utilizing <a href="https://www.mx.com/blog/what-is-instant-account-verification/" target="_blank" rel="noopener">Instant Account Verifications (IAV)</a> with <a href="https://www.mx.com/blog/what-is-instant-account-verification/#oauth-connections" target="_blank" rel="noopener">direct OAuth connections</a> instead of <a href="https://www.mx.com/blog/what-is-instant-account-verification/#what-are-microdeposits" target="_blank" rel="noopener">microdeposits</a> allows organizations to more quickly verify account information most cost-effectively, and can help significantly decrease abandonment rates.
2. Account Logins are Always Your User
Financial providers have to <a href="https://www.mx.com/blog/striking-the-balance-to-meet-consumer-expectations/" target="_blank" rel="noopener">strike the balance between a speedy and secure login process</a>. They should consider how to keep pace with new authentication standards and experiences across other industries to ensure they are delivering a secure, seamless experience for their consumers.&nbsp;By adding modern OAuth/FIDO authentication services, you&rsquo;ll be able to tell more clearly when your user is logging in vs. a bot.&nbsp;
3. Account Aggregation is Secure and Seamless
By leveraging an <a href="https://www.mx.com/products/data-access/" target="_blank" rel="noopener">open finance API</a>, consumers can connect their accounts together without the need to share their username and password. Instead, organizations leverage tokenized API and OAuth connections to enable consumers to connect to and share their financial data &mdash; on their terms.
4. Day-to-day Financial Management Gets Smarter
Financial providers have what they need to help curb risk &ndash; a wealth of data regarding how their consumers manage their money including where, when, and how. This allows financial institutions to better understand their consumers, create and monitor patterns, and spot anomalies.&nbsp;

The industry shift to Open Finance also serves as an opportunity for financial institutions to uplevel their security.

4 Ways Open Finance Uplevels Security

Consumers expect custom experiences from their financial providers, but personalization requires sharing their data.

Learn More About What Consumers Consider When Choosing Where to Bank

Consumers want personalized experiences from their financial service providers, but how much of their financial data are they willing to share? 

Financial Data Fuels Personalized Experiences | MX Blog

How many times have you shared your phone number or email in the check-out line to get coupons or rewards? How often do you add your birthday to your account at your favorite retailer to get a special treat on your special day? Most of us share personal data about ourselves constantly in exchange for a better experience. The same is true for sharing financial data.&nbsp;
<a href="https://www.mx.com/research/what-influences-where-consumers-choose-to-bank/" target="_blank" rel="noopener">MX&rsquo;s latest survey</a> of 1,000+ U.S. consumers found 39% of consumers are likely to exchange their financial transaction history for more personalized offers and services from a retailer or restaurant they frequently visit. Millennials are the generation most likely to exchange their financial data (53%) for a more custom experience, followed by Gen X (46%), and Gen Z (44%).&nbsp;
The key word here is that it&rsquo;s an exchange &mdash;&nbsp;consumers won&rsquo;t share their data for nothing. It has to deliver value for them &mdash; more personalized, more relevant, and more timely.
Other key findings from MX&rsquo;s latest survey include:
The limit exists, but is unknown. Consumers are open to sharing their personal financial data but are still figuring out how much they want to share in exchange for customized offers. The largest response group (34%) said they would only share what&rsquo;s absolutely necessary while only 14% said they would share all of their financial data.
<img src="https://cms.mx.com/assets/902dd935-7d0a-4280-bbfd-daae9d653b22?width=646&amp;height=616" alt="109f7861 0abc 4272 Badd Fab686e5dafa" />
Men are almost twice as likely to be willing to share their data. More than half (51%) of men would provide access to their financial transaction history to receive more personalized offers and services, compared to 28% of women.
<img src="https://cms.mx.com/assets/806be496-b1cb-472a-9f59-2021a281006b?width=715&amp;height=343" alt="9fecaa35 C16f 4c13 Ba60 Bdcc9e20c499" />
Don&rsquo;t let an increase in data sharing create an increase in risk. Consumers may be warming up to the idea of sharing more of their personal information with companies, but <a href="https://www.mx.com/blog/four-ways-open-finance-uplevels-security/" target="_blank" rel="noopener">they still deeply care about security</a> and need a trusted partner to help protect their financial data. Over half of consumers (53%) ranked &ldquo;how securely a financial services provider protects my personal financial data&rdquo; as one of the most important factors they consider when selecting a provider.
<img src="https://cms.mx.com/assets/26bc2ecd-35c8-4947-b00c-35d22328eef2?width=389&amp;height=546" alt="F4931c4b Ad60 452b 860f 90b6e4aca7da" />

Financial providers need financial data in order to deliver personalized experiences. How much data are consumers willing to share?

Financial Data Fuels Personalized Experiences — And Consumers Are Willing To Share It

FDX promotes Open Finance API standards to enable transparent, secure, user-permissioned data sharing and utilization.

MX is a proud member of FDX, promoting Open Finance API standards to enable transparent, secure, user-permissioned data sharing and utilization.


What Is FDX and Why Does It Matter? | MX Blog

Today&rsquo;s world is ruled by data. Financial institutions, fintechs, big tech, and other companies leverage consumer financial data to create products, services, recommendations, and campaigns. Unfortunately, financial data isn&rsquo;t always collected through methods where the consumer is in control.
According to MX&rsquo;s latest survey of 1,000+ American adults, <a href="https://www.mx.com/research/what-influences-where-consumers-choose-to-bank/">82% of consumers feel they own their financial data and should be able to control who has access to it</a>. However, over half of consumers (52%) aren&rsquo;t sure which companies or financial providers have access to their financial data.
Consumer financial data access and control has historically been left up to the financial institutions, fintechs, and other third parties involved. While this approach has provided the groundwork for many innovations, the financial industry is running into challenges around consumer protections, lack of consumer choice, and ultimately, increased costs for consumers on the services they choose.&nbsp;
At MX, we believe in the power of financial data to unlock new insights and drive better money experiences that benefit companies and consumers alike. An open finance ecosystem &mdash; where everyone can access and act on financial data &mdash; enables smarter, faster, and more reliable money experiences. And, it puts consumers in the driver seat.&nbsp;
MX has always been an advocate that<a href="https://www.mx.com/blog/consumers-should-own-their-financial-data-mx-comment-to-the-cfpb/"> consumers should be in control of who can access their data</a>. We believe consumers should be able to easily grant or revoke access at any time. Organizations like the<a href="https://financialdataexchange.org/"> Financial Data Exchange (FDX)</a> are crucial to moving the industry forward, setting the standard for secure <a href="https://www.mx.com/blog/what-is-consumer-permissioned-data/">consumer-permissioned data</a> sharing.
In this post, we will cover:
<ul>
<li><a href="#what-is-fdx" target="_self">What is the Financial Data Exchange (FDX)?</a></li>
<li><a href="#why-fdx-standards-matter" target="_self">Why FDX Standards Matter</a></li>
<li><a href="#consumer-benefits" target="_self">How FDX Standards Benefit Consumers</a></li>
<li><a href="#business-benefits" target="_self">How FDX Standards Benefit Businesses</a></li>
</ul>
<h2 id="what-is-fdx">What is the Financial Data Exchange (FDX)?&nbsp;</h2>
FDX is a non-profit industry standards body dedicated to unifying the financial services ecosystem around common, interoperable, and royalty-free technical standards for <a href="https://www.mx.com/blog/what-is-consumer-permissioned-data/">user-permissioned financial data sharing</a>. Any company within the financial industry can contribute to the development, growth, and adoption of the FDX application programming interface (API) and other objectives.<a href="https://financialdataexchange.org/FDX/About/About-FDX.aspx?WebsiteKey=deae9d6d-1a7a-457b-a678-8a5517f8a474&amp;hkey=dffb9a93-fc7d-4f65-840c-f2cfbe7fe8a6&amp;a315d1c24e44=1#a315d1c24e44">&nbsp;</a>
FDX is centered around <a href="https://financialdataexchange.org/FDX/About/About-FDX.aspx?WebsiteKey=deae9d6d-1a7a-457b-a678-8a5517f8a474&amp;hkey=dffb9a93-fc7d-4f65-840c-f2cfbe7fe8a6&amp;a315d1c24e44=1#a315d1c24e44">five core data sharing principles</a> that empower users: Control, Access, Transparency, Traceability, and Security. With over 32 million consumer accounts using the FDX API, the largest financial institutions and fintechs in the financial ecosystem widely adopt the FDX API standards.
Is your organization a member of the<a href="https://www.businesswire.com/news/home/20220627005029/en/Financial-Data-Exchange-FDX-Reports-32-Million-Consumer-Accounts-on-FDX-API-to-Power-Open-Banking-and-Open-Finance"> 200 financial industry leaders</a> innovating the financial ecosystem?<a href="https://financialdataexchange.org/"> Learn more here</a>.
<h2 id="why-fdx-standards-matter">Why FDX Standards Matter</h2>
FDX standards put the consumer&rsquo;s needs first. Enabling consumers to easily connect their accounts to see all of their data in one place creates positive outcomes for consumers and businesses alike. This is the promise of Open Finance.
<a href="https://www.mx.com/blog/what-is-open-finance/" target="_blank" rel="noopener">Open Finance</a> enables access and sharing of consumer data to even more financial products and services &mdash; not just banking, like <a href="https://www.mx.com/blog/what-is-open-banking/" target="_blank" rel="noopener">Open Banking</a>. This includes loans, consumer credit, investments, and pensions. It also enables wider integration of financial data with non-financial industries, such as healthcare and government. In Open Finance, consumers can grant trusted third parties access to their entire financial footprint for better experiences and personalized solutions to improve financial wellness.
<h3 id="consumer-benefits">How FDX Standards Benefit Consumers</h3>
FDX standards allow consumers to more easily connect their various financial accounts and data together into a single view &mdash; enabling a more seamless money experience. And, with the freedom and flexibility that Open Finance enables, consumers have more choice and control over the data they share and how they engage with their finances. They can gain unparalleled access to a broader range of products and services.&nbsp;
<h3 id="business-benefits">How FDX Standards Benefit Businesses</h3>
We previously wrote about the power of open access to data for financial institutions, fintechs, and other organizations. It enables:&nbsp;
<ul>
<li style="font-weight: 400;" aria-level="1">Better Fraud and Risk Management: By leveraging an open finance API rather than screen scraping, consumers never have to share their username and password, and financial providers eliminate the risk of sharing credentials.</li>
<li style="font-weight: 400;" aria-level="1">More Accurate Customer Profiles: Financial providers can gain access to real-time financial data from their consumers. They can easily see where consumers are sharing their data and why it is being used. This helps identify product and partnership opportunities.</li>
<li style="font-weight: 400;" aria-level="1">Enhanced Customer Experiences: By putting consumers in the driver&rsquo;s seat, financial providers can build trust and improve relationships, leading to greater customer satisfaction and loyalty.</li>
<li style="font-weight: 400;" aria-level="1">Personalized Services: By analyzing their financial data, businesses can identify specific customer needs or preferences and tailor their offerings accordingly. For example, a bank may offer investment opportunities to customers who have a higher disposable income, or provide budgeting tools to those who struggle to manage their finances. By offering more personalized services, businesses can create a stronger connection with their customers, leading to increased loyalty and retention.</li>
<li style="font-weight: 400;" aria-level="1">Data-Driven Decision Making: Businesses can gain insight into trends and patterns that may not have been apparent before. This can help businesses identify new opportunities, optimize their operations, and make more informed decisions about product development and marketing strategies.</li>
</ul>
With greater visibility into their customers, financial providers can provide more personalized recommendations, products, and services to meet their needs. Consistent standards also form a foundation for increased innovation and industry collaboration.&nbsp;
MX believes adopting FDX standards and embracing Open Finance will help build a more<a href="https://www.mx.com/blog/creating-a-fair-and-competitive-financial-environment/"> fair and competitive financial ecosystem</a> that gives consumers more choice in where and how they manage their money, as well as greater insights to take control of their finances.&nbsp;
Adopting FDX standards and embracing<a href="https://www.mx.com/blog/what-is-open-finance/"> Open Finance</a> will enable financial institutions and fintechs to truly empower everyone to be financially strong with access to the right insights and products to support their financial goals.
MX continues to be a driving force at FDX by chairing and collaborating in key task forces and representing fintechs on the FDX Board of Directors. MX is also making it easier than ever for financial institutions of all sizes to accelerate open finance adoption and enhance the money experience for consumers through Data Access. <a href="https://www.mx.com/products/data-access/">Data Access is an open API platform built on FDX standards</a> that improves time-to-market and reduces costs to deliver secure data sharing, as well as provide the groundwork for greater insights about customer behaviors, trends, and needs. It provides financial institutions with the ability to monitor and manage where consumers are sharing their financial data and the tools to implement a more secure data-sharing experience with token-based connectivity.

Why FDX Matters — Promoting a Standard of Excellence in Financial Services

MX's latest research shows the top ways financial providers can meet consumer expectations of digital banking experiences.

Deliver Better Money Experiences That Meet Consumer Expectations

MX’s research shows 5 areas where financial institutions and fintechs can focus to meet top consumer expectations for digital and mobile banking.

How to Deliver the Best Digital Banking Experience | MX Research Shows

Today&rsquo;s consumers want and expect more from their digital banking experiences. But many financial providers still fall short of delivering a differentiated experience that meets their top expectations. According to <a href="https://www.forrester.com/report/whats-next-in-mobile-banking-seven-additional-features-that-will/RES178254">Forrester</a>, most digital banking consumers say their &ldquo;primary financial provider offers a mobile app that is about the same &mdash; or even worse &mdash; than other banking apps&rdquo; and &ldquo;is undifferentiated in the broader banking market.&rdquo;
So how can we do better to meet consumer expectations? MX&rsquo;s latest survey of 1,000+ U.S. consumers reveals 5 areas financial providers can focus to meet <a href="https://www.mx.com/research/what-influences-where-consumers-choose-to-bank/">top consumer expectations</a>:&nbsp;
<ol>
<li style="font-weight: 400;" aria-level="1">Help Consumers Reach Financial Goals: More than half of consumers agree they want their financial provider to help them better manage their finances (57%) and believe financial providers have a responsibility to teach them to be financially strong (54%). But, one-third of consumers feel financial providers don&rsquo;t do enough to support their financial needs. </li>
<li style="font-weight: 400;" aria-level="1">Personalization is Paramount: Half of consumers expect financial providers to deliver personalized offers for tools, products, and services to help them reach their financial goals. Other top expectations for personalization include: 
<ul>
<li style="font-weight: 400;" aria-level="1">Discounts or offers for brands they use (44%)</li>
<li style="font-weight: 400;" aria-level="1">Customized insights in the online or app experience to help them understand their spending (43%)</li>
<li style="font-weight: 400;" aria-level="1">Proactive notifications and recommendations to help them better manage money (42%)</li>
<li style="font-weight: 400;" aria-level="1">Ability to personalize a card, such as choose their displayed name, etc. (36%)</li>
<li style="font-weight: 400;" aria-level="1">Automated budgeting and analysis of their spending (31%)</li>
</ul>
</li>
<li style="font-weight: 400;" aria-level="1">Proactively Tell Consumers What They Should Know: Seventy-nine percent of respondents expect their financial provider to proactively alert them to issues related to their finances (such as upcoming payments due, low account balances, etc.). Consumers are looking for help staying on top of their finances. When asked what question is most important for them to be able to answer when managing their finances, the top questions to answer are: 
<ul>
<li style="font-weight: 400;" aria-level="1">How much can I put towards debt or savings? 22%</li>
<li style="font-weight: 400;" aria-level="1">Am I spending more than I should? 21%</li>
<li style="font-weight: 400;" aria-level="1">How can I cut expenses? 17%</li>
</ul>
</li>
<li style="font-weight: 400;" aria-level="1">Provide Cutting-Edge Products, aka Make Things Easier: Forty-seven percent of respondents believe their financial provider should do more to be innovative. While this survey doesn&rsquo;t dive into what types of innovations consumers are looking for, it did reveal a significant opportunity to make things easier for consumers:
<ul>
<li style="font-weight: 400;" aria-level="1">54% of respondents say it&rsquo;s easier to open a new financial account than set up a new gym membership.</li>
<li style="font-weight: 400;" aria-level="1">61% of consumers say it&rsquo;s easier to sign up for a rewards program at their favorite store than to apply for a new credit card.</li>
<li style="font-weight: 400;" aria-level="1">62% of consumers say it&rsquo;s easier to renew their driver&rsquo;s license or ID than apply for a loan.</li>
</ul>
</li>
<li style="font-weight: 400;" aria-level="1">Give Consumers Control of Financial Data: Consumers continue to want control over their financial data. Eighty-two percent of consumers agree they own their financial data and should be able to control who has access to it. In addition, 78% of consumers agree they expect to be able to see all of their financial data in one place. This is a considerable increase from Jan. 2023 where 64% said the same.</li>
</ol>

MX’s research shows 5 areas where financial institutions and fintechs can focus to meet top consumer expectations, including personalization, financial data control, ease of use, and proactive alerts. 

Five Ways to Meet Digital Banking Consumer Expectations 

Financial providers should focus on these five areas during product strategy to deliver better money experiences at scale.

Learn More About Winning the Fight for Customer Loyalty and Business Growth

These are the top five areas financial providers should focus on while forming product strategy.

Build Products That Scale and Deliver Customer Value | MX Blog

<a href="https://www.mx.com/research/what-influences-where-consumers-choose-to-bank/">Nearly 1 in 4 consumers has opened a new bank account in the past 6 months</a>. In today's competitive landscape, building products and experiences that can scale while delivering customer value is more important than ever.&nbsp;
Wes Hummel, MX Chief Technology Officer, shared his<a href="https://www.mx.com/product-forums/driving-adoption-and-engagement/" target="_self"> top 5 areas to focus on to create a winning product strategy</a>:&nbsp;
<ol>
<li>Understand your customers. Always start with the customer in mind. This includes what they want, their goals, and expectations. Financial providers have access to the most valuable customer data set &mdash; transaction data. By leveraging transaction data (like where customers shop the most or how much they&rsquo;re paying in interest on their loans), <a href="https://www.mx.com/research/what-influences-where-consumers-choose-to-bank/">financial providers can deliver the personalized experiences half of consumers now expect</a>.&nbsp;</li>
<li>Focus on the user experience. Creating a simple, straight-forward experience for consumers is critical. It doesn&rsquo;t matter if the product is better than other options if consumers can&rsquo;t easily access and use it. Financial providers should make it easy for consumers to find what they need, use the product effectively, and gain value. </li>
<li>Build a scalable architecture. Products need to be able to scale as the customer base grows to ensure a reliable experience for consumers. This requires using a scalable technology stack and developing products in a way that makes it easy to add new features and functionality.</li>
<li>Remember innovation takes iteration. No product is perfect. Not only is that okay, it&rsquo;s critically important. As financial providers learn more about their customer&rsquo;s needs, they can and should continue to iterate to improve the money experience and deliver even more value. </li>
<li>Cultivate strong teams. The most important factor for a winning product strategy is the team behind it. Building successful products and experiences requires a strong team of people who are passionate about addressing consumer needs and care deeply about the experiences they deliver.&nbsp;</li>
</ol>

In order to build scalable products and deliver better money experiences to consumers, financial providers should focus on these five key areas while forming product strategy.

Building Products That Scale and Deliver Better Money Experiences

MX’s latest research shows trust remains the top factor consumers consider when deciding where to deposit and manage their money.

Building Consumer Trust and Increasing Deposits Are Intertwined

Consumer trust in financial providers is rising, at the same time the majority of U.S. consumers make plans to switch banks. Our research uncovers what matters most.

Banking on Trust | MX Blog

Trust remains the top factor consumers consider when deciding where to deposit and manage their money. Fifty-eight percent of respondents in MX&rsquo;s latest survey of 1,053 U.S. consumers ranked the level of trust they feel regarding a provider as one of the most important factors.&nbsp;
Consumers aren&rsquo;t just looking for a provider to keep their money safe. Trust also means safeguarding their personal data. It means helping them better understand and manage their finances. And, it means focusing on delivering products and services that drive positive outcomes to help them meet their financial goals.&nbsp;
Today, trust must be earned and nurtured throughout the money experience. It is what forms the foundation for digital adoption and engagement &mdash; which leads to higher consumer satisfaction rates, builds loyalty, and drives business growth.&nbsp;
According to the 2023 Edelman Trust Barometer, the <a href="https://www.mx.com/guides/trust-and-the-consumer-money-experience/">financial services industry as a whole is one of the least trusted industry sectors in the world, ranked only above social media</a>. As an industry, we can do better &mdash;&nbsp;and we&rsquo;re headed in the right direction.&nbsp;
In August 2022, we asked consumers if they believed their providers have their best interests at heart. At the time, only 44% responded yes. Now, that number has risen nearly 20% &mdash; today, 61% stated they believe their providers have their best interest at heart. In addition, 66% stated they trust their providers to &lsquo;do the right thing.'
So who do consumers trust the most? And to what extent?
National banks ranked most trustworthy to securely manage financial data: Fifty percent of consumers ranked national banks as the organizations they would trust the most to securely manage their financial data, followed by credit unions (19%), and local or regional banks (10%). Only 3% said they would trust tech companies, such as Apple, Google, and Amazon, the most to securely manage their financial data.
Men trust financial providers more than women. Across several dimensions, men consistently rated their level of trust higher than women. While the survey didn&rsquo;t get into the reasons why, there may be an opportunity for financial providers to do more to build trust with women.&nbsp;
<img src="https://cms.mx.com/assets/db481552-556d-4444-862d-159bc0d204b2?width=2863&amp;height=1373" alt="Consumer Report Assets 02" />
Consumers trust financial providers to protect them from fraud. <a href="https://www.ftc.gov/news-events/news/press-releases/2023/02/new-ftc-data-show-consumers-reported-losing-nearly-88-billion-scams-2022">Consumers lost nearly $8.8 billion to scams last year</a>, over a 30% increase from 2021 according to The Federal Trade Commission. Fraud and data breaches have also reached all-time highs. So, it&rsquo;s no surprise that 72% of consumers agree fraud is one of their biggest concerns. Fortunately, 74% of consumers trust their financial providers to help protect them from fraud and other security risks.&nbsp;
<img src="https://cms.mx.com/assets/0415e00a-f2aa-483a-98b7-90f7e1e46965?width=727&amp;height=1213" alt="Infographic P1" />
<img src="https://cms.mx.com/assets/0982ee16-696e-4b69-9398-98635f57c2e7?width=727&amp;height=1369" alt="Infographic P2" />
<img src="https://cms.mx.com/assets/c25d4de9-22c4-4dc0-9a5e-9a9da545fee6?width=727&amp;height=1514" alt="Infographic P3" />

What factors do consumers consider when deciding where to manage their money? MX's latest research explores what matters most to consumers in looking for a financial service providers.

Banking on Trust: Consumer Expectations for Financial Providers

MX has been partnering with Q2, a leading provider of digital transformation solutions for banking and lending, for nearly a decade to help financial institutions raise the bar on digital experiences.

Deliver Data-Driven, Personalized Financial Insights with Q2 + MX

Together, MX and Q2 enable financial institutions to deliver personalized financial guidance and actionable insights seamlessly integrated into the Q2 cPFM digital experience. 

MX + Q2 | Digital Consumers Want Personalized Insights

Consumers are increasingly looking to financial service providers for help improving their financial health. But, there&rsquo;s opportunity for banks, credit unions, and other financial providers to do more to meet these needs. MX&rsquo;s research revealed <a href="https://www.mx.com/research/what-consumers-want-from-financial-providers/">1 in 4 of consumers feel their financial providers don&rsquo;t do enough to support their needs</a>.&nbsp;
MX has been partnering with Q2, a leading provider of digital transformation solutions for banking and lending, for nearly a decade to help financial institutions raise the bar on digital experiences.&nbsp;&nbsp;
Together, MX and Q2 are enabling financial institutions to deliver personalized, automated financial guidance and actionable insights based on consumer spending, saving, and borrowing behaviors, seamlessly integrated into the Q2 cPFM digital experience. Here&rsquo;s why that matters:&nbsp;
<ul>
<li style="font-weight: 400;" aria-level="1">Seventy percent of consumers <a href="https://www.mx.com/research/consumer-trends-digital-and-mobile-banking/">expect their financial provider to give them personalized notifications and insights</a>. MX Insights deliver personalized recommendations and insights to help consumers better manage their spending, create budgets, increase savings, and pay down debt.&nbsp;</li>
<li style="font-weight: 400;" aria-level="1">Seventy-two percent of U.S. consumers say they <a href="https://www.mx.com/research/consumer-trends-digital-and-mobile-banking/">prefer to manage all their finances online</a> or through a mobile app. Q2&rsquo;s digital banking solution enables financial institutions to deliver an intuitive, feature-rich retail banking experience.&nbsp;</li>
<li style="font-weight: 400;" aria-level="1">Digitally engaged users are 2.7 times more likely to stay with a financial institution, based on results from a large U.S. financial institution. By embedding personalized insights into a robust digital experience, financial providers can increase digital adoption and engagement.&nbsp;</li>
</ul>
<img src="https://cms.mx.com/assets/cf7efa8a-740b-4577-baf7-fd5282e95440?width=2000&amp;height=1174" alt="Mx Insights Examples 1" />
<img src="https://cms.mx.com/assets/5a3ef5c6-ec84-4a78-a5ea-f361531a54b0?width=2252&amp;height=1210" alt="Mx Insights Examples 2" />

Consumers are increasingly looking to financial service providers for help improving their financial health. But, there’s opportunity for banks, credit unions, and other financial providers to do more to meet these needs.

Digital Consumers Want Personalized Insights | MX + Q2 Partnership

Consumers tend to hold multiple accounts and are not afraid to switch or open a new one if their needs are not being met. 

Join leaders from MX, USAA, COCC, and Broadridge for our next Innovation Forum on July 26 to hear more from MX’s latest consumer research and how to drive engagement to win the war for deposits. 

Winning the Fight for Customer Loyalty and Business Growth

Today’s consumers are quick to switch financial institutions if they don’t deliver engaging experiences.

Consumer Engagement Key to Business Growth | MX Blog

Amid market volatility and stubborn inflation, financial institutions are competing to win &mdash; and keep &mdash; consumer deposits. And, the reality is that consumers are more apt to hold multiple accounts and not afraid to switch or open a new one if their current primary account doesn&rsquo;t meet their needs. According to Ron Shevlin, Chief Research Officer at Cornerstone Advisors, of the consumers who have opened a checking account in 2022 or 2023, six in 10 have more than one checking account.&nbsp;
Cornerstones latest research also shows <a href="https://thefinancialbrand.com/news/checking-accounts/are-your-customers-cheating-on-you-164133/">14% of Americans have already opened a new checking account this year</a>. Forty-seven percent of those new accounts were opened with digital banks and fintechs, a notable increase from 36% in 2020.&nbsp;
MX&rsquo;s latest research showed an even higher influx of new account openings &mdash;&nbsp; more than half of the 1,000+ consumer respondents said they have opened a new bank account (23%) or considered switching to a new bank (28%) in the past 6 months.&nbsp;
So how do you keep consumers and their deposits from switching? Engagement is key to increasing share of mind and ultimately, growing share of wallet. It requires frictionless, proactive, and value-driven digital interactions that help consumers&rsquo; manage their financial lives and achieve their financial aspirations.&nbsp;
Guide consumers to their financial goals. Consumers want a financial provider that helps them manage their finances with proactive, personalized insights and tools.&nbsp;
Add clarity to transaction data for consumers. When asked about how often consumers see transactions on their account that they don&rsquo;t recognize at first glance, <a href="https://www.mx.com/guides/trust-and-the-consumer-money-experience/">nearly 1 in 4 report this happens at least sometimes or more frequently</a>. Turn indecipherable transaction data into clear, actionable information to help consumers better understand their transactions.&nbsp;
Empower consumers to create a full picture of their finances in one place. By making it easy for consumers to aggregate all of their financial accounts in your digital or mobile experience, you can become their finance hub, as well as gain greater insights into consumer behaviors to deliver a better experience.

Engagement is key to keeping consumers and their deposits from switching.

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