Mastercard Simplifies Account Opening with Open Banking

Mastercard has introduced a new program leveraging open banking to streamline the account opening process for select US debit and prepaid products, as outlined in Finextra News. Through this initiative, Mastercard offers participating US issuers free access to its Account Owner Verification, Account Detail Verification, and Account Balance Check technology.

This program aims to support the digital account opening of Mastercard-branded consumer and small business debit cards, as well as general-purpose reloadable consumer prepaid products. By utilizing these technologies, issuers can verify account ownership more efficiently, reduce the number of abandoned or inactive accounts, and minimize non-sufficient fund returns.

Silvana Hernandez, Executive Vice President of Product and Engineering for North America at Mastercard, emphasized the growing trend of consumers opening bank accounts online. She noted that consumers are increasingly opting for the convenience and efficiency of digital experiences over traditional manual methods. Hernandez highlighted that the «Open Banking for Account Opening» program provides a secure and valuable entry point to the digital economy, leveraging the power of consumer-permissioned data.