Open Banking Is Being Embraced by Brazilian Consumers, While US Residents Concerned About Privacy, Security: Report

Globally, 84% of consumers agree that they should “have control of their financial data, and banks should not prevent the movement of money between other financial services.”

These are the principles that are the “basic tenets of open banking,” according to an update shared with CI. This is according to a global consumer survey carried out by API Management service Axway which found that when it comes to Open Banking:

  • Brazilians (79%) are most wholeheartedly embracing open banking
  • U.S. Americans are more split, with only slightly more feeling it’s a positive development (51%) and the rest worried about security and data privacy.
  • 60% of French respondents see open banking as a negative development, followed by57% of Germans and 54% of British.

As noted in the report, people are still “uncertain about Open Banking, but they love the services it can enable.”

The report also mentioned the researchers found that when it comes to finance and open banking, there’s “a growing awareness of and desire for more personalized, convenient services.” Security concerns continue to concern people, but there’s also “a growing acceptance of personal data rights and principles of data openness.”

As mentioned in the update, 84% of respondents globally “agree that they should have control of their financial data, and banks should not prevent the movement of money between other financial services – principles that are basic tenets of open banking.”

The Axway survey also found that Brazilians are “most wholeheartedly embracing open banking, with 79% of them saying they view a growing movement toward open banking as a positive development.”

The company added that they’ve seen this up close as they “piloted a dedicated Open Banking solution in Brazil over the past year.” Dynamic markets such as Latin America, the Middle East, and other world regions are enthusiastic because people there have “grasped the potential of open banking to democratize finance.”

Axway’s Head of Open Banking, Eyal Sivan, points out that companies are “moving quickly to seize a great business opportunity.”

Further north, U.S. Americans are “more split, with only slightly more feeling it’s a positive development (51%) and the rest worried about security and data privacy.”

Meanwhile, in a region that was an early adopter of Open Banking regulations surrounding data ownership, Europeans tend to have “more negative responses to the growing open banking movement: 60% of French respondents see open banking as a negative development, followed by 57% of Germans and 54% of British.” They “echo U.S. Americans’ concerns about security and data privacy,” the report revealed.

As noted in the update, “one interesting story the survey tells is that the U.S. is lagging in terms of convenience in digital banking: nearly 18% of people globally have recently used a non-digital method to transfer money – writing a check from one bank to cash it in the other, withdrawing cash or ordering a cashier’s check to deposit it to their other bank, for example.”

The report added:

“But the breakdown is very different when viewed country to country: nearly half of Americans (45%) recently used a low-tech method to transfer money, vs only 28% of Brazilians, 26% of French, 22% of British and 20% of Germans – because their bank didn’t offer simpler, more secure ways of transferring money, or don’t ‘talk to each other.'”

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