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

MX research shows the similarities and differences in where consumers trust AI and where they use AI to help with their finances.

MX’s two most recent surveys show consumers trust AI’s help and use AI’s help in different use cases of their finances. 

MX Survey Says Consumers Trust and Use Differ When it Comes to AI

Artificial Intelligence has been top of mind for many in the financial industry over the last few years but questions still linger, like: Do consumers trust AI to help them with their finances? If so, how are consumers using AI?&nbsp;
MX&rsquo;s <a href="https://www.mx.com/research/financial-apps-fall-short/">latest consumer research</a> shows that, while many <a href="https://www.mx.com/research/the-missing-link/">consumers would trust AI</a> to help with certain finance-related tasks, relatively low numbers of consumers are actually currently using AI to help with their finances. While we did not ask specifically about the reason, it&rsquo;s clear there is an opportunity for financial providers to do more to educate consumers about AI (they may be using it and not even know it) and incorporate AI into financial wellness tools.&nbsp;
Here are the key takeaways from our research.
<h3>1. AI Adoption is More Common With Younger Generations</h3>
Attitudes about technology have often been divided along generational lines &mdash; with younger generations more apt to adopt technology and older generations remaining holdouts. And, AI is no exception. Today, only 22% of all consumers say they are using AI to help with their finances. Holding true to the generational trend, Millennials and Gen Z remain the most tech-forward generations. Thirty-seven percent of Millennial consumers and 27% of Gen Z say they use AI to help with their finances, compared to just 2% of Baby Boomers.
<h3>2. High Trust Does not Mean High Use</h3>
In our <a href="https://www.mx.com/research/the-missing-link/">previous consumer survey</a>, we gave consumers a list of AI use cases in financial services and asked them to identify where they would trust AI to help them. In this latest research, we gave consumers the same list and asked them where they are using AI.
The results show trust in AI and use of AI don&rsquo;t match up as much as you might expect &mdash; especially when considering that these findings were collected within six months of each other. For instance, the most trusted feature was reported as the least used.&nbsp; Fifty-nine percent of consumers say they trust AI to help deliver proactive reminders to pay bills, save money, etc., but only 10% of respondents say they use AI for this.
<h3><img src="https://cms.mx.com/assets/a96136fc-b79c-4c11-8277-663a39e3763f?width=1200&amp;height=851" alt="Image (22)" />3. AI Helps Consumers Look Ahead Rather Than Keep Up</h3>
While trust centered on basic functions like proactive reminders, actual usage leans into more advanced functionality. For those consumers who say they use AI to help manage their finances, the most common uses centered on financial advice:&nbsp;
<ul>
<li style="font-weight: 400;" aria-level="1">Provide basic financial advice, such as how much to put in savings or pay towards debt (22%)</li>
<li style="font-weight: 400;" aria-level="1">Provide investment-related financial advice, such as stocks to purchase, retirement planning, etc. (15%)</li>
<li style="font-weight: 400;" aria-level="1">Personalized recommendations on where you can make changes to improve finances (15%)</li>
</ul>
Overall, our research shows that while many consumers would trust AI to help with their finances, most consumers are not yet adopting it into their financial lives. But, those who are using AI see huge potential to help them better reach their financial goals. The consumers that use AI want help looking ahead and planning for the future. And, they are younger and more willing to trust AI to help them achieve their goals.&nbsp;
While we don&rsquo;t know if this data is simply because these services aren&rsquo;t available to most consumers or consumers don&rsquo;t know they are using AI, it&rsquo;s clear AI can be a powerful tool to help consumers achieve financial strength.&nbsp;
But, AI is only worthwhile if it is powered by quality data. So, <a href="https://www.mx.com/whitepapers/2025-predictions/">looking ahead</a>, financial providers will benefit most by taking a beat and building the right data foundation to fuel better AI use cases.
To read more insights on financial apps, data sharing, and more, check out our <a href="https://www.mx.com/research/financial-apps-fall-short/">full research report.</a>

Trust vs. Use: How Consumers Feel About Adopting AI

Regardless of regulatory uncertainty, MX continues to focus on customer outcomes driven by open banking, financial inclusion, etc.

In the face of uncertainty at the CFPB, MX remains steadfast in its commitment to supporting financial consumers and the companies that serve them.

Prioritizing Consumer Outcomes In the Face of CFPB Uncertainty

Just a few weeks ago, we shared a <a href="https://www.mx.com/blog/what-cfpb-turbulence-means-for-open-banking/">recap and early thoughts</a> on all the happenings at the Consumer Financial Protection Bureau. Since then, quite a bit has changed. On February 11, President Trump <a href="https://www.bankingdive.com/news/cfpb-mckernan-fdic-nomination-70-employees-fired/739892/">nominated civil service veteran Jonathan McKernan</a> to serve as Director of the CFPB. McKernan has most recently been serving a five-year term as a director at the FDIC, where he advocated for &ldquo;responsible risk-taking&rdquo; and against &ldquo;duplicative&rdquo; regulatory requirements on financial institutions across agencies.&nbsp;
The in-progress nomination of McKernan signals a potential longer term &ldquo;settling of the dust&rdquo; for all the recent tumult at the agency. But at present, uncertainty continues in the face of multiple actions from Administration leaders and multiple lawsuits in the courts.&nbsp;
While MX can&rsquo;t predict where things will end up, we do know that our mission of supporting financial consumers and the companies that serve them remains unchanged in the face of political uncertainty. We&rsquo;re proud to work closely with banks, credit unions, and other financial providers to help them drive better financial outcomes for consumers. To uphold our mission and continue to support financial institutions in meeting consumer needs, we&rsquo;re staying focused on five key principles:&nbsp;
<h2>1. Open Banking is the path forward regardless of regulation.&nbsp;</h2>
MX is committed to open banking adoption and secure APIs because we believe that it is the path forward for financial consumers and the companies that serve them. <a href="https://www.mx.com/blog/what-is-open-banking/">Open Banking</a> allows consumers to securely share their financial data with trusted third-party providers, which can then provide them with innovative financial products and services that can help them manage their money more effectively. Secure APIs are essential for ensuring that this data is shared safely and securely. By focusing on <a href="https://www.mx.com/products/data-access/">open banking and secure APIs</a>, MX is helping to create a more competitive and innovative financial services landscape that benefits consumers and businesses alike.
<h2>2. Financial inclusion is a key ingredient of societal strength and stable democracies.&nbsp;</h2>
When individuals and communities have access to &mdash;&nbsp;and can effectively use &mdash;&nbsp;a range of financial services, it fosters economic empowerment, reduces inequality, and promotes social mobility. This, in turn, creates a more equitable and resilient society, where all citizens can participate fully in economic life and contribute to the nation's overall well-being. By breaking down barriers to financial access and promoting financial literacy &mdash; and arming consumers with <a href="https://www.mx.com/products/financial-insights/">personalized advice</a> and intelligent tools, we can build stronger, more inclusive, and more democratic societies that benefit everyone. We see this in the work that our clients do to use consumer-permissioned data to support those customers with the personalized advice and insights they want to help them better manage their finances.&nbsp;
<h2>3. Helping to fight fraud remains a top priority.</h2>
<a href="https://www.mx.com/blog/fraud-on-the-rise-and-how-to-fight-it/">Financial fraud</a> is a huge problem, with no signs of slowing down. According to the Federal Trade Commission (FTC), consumers reported losing more than $10 billion to fraud in 2023. MX helps bolster <a href="https://www.mx.com/use-cases/fraud-risk-management/">fraud prevention and mitigate risk</a> with tokenized connections that eliminate credential sharing, real-time verifications and balance checks, and cleansed and enhanced transaction data that can help you spot anomalies faster. Through these robust tools and insights, we work hard to play a crucial role in maintaining the integrity of the financial system and protecting consumers from the devastating effects of fraud.
<h2>4. Building in a privacy-first way is a corporate value.&nbsp;</h2>
Since Day 1, MX has focused on building products in a way that protects consumer privacy. We also believe consumers should have the right to control their financial data and choose how it is shared and used. Unlike some others in the aggregation space, our approach ensures that consumers maintain anonymity when they connect to multiple financial institutions or fintechs that use our products to connect. We intentionally ensure we don&rsquo;t know that the same consumer has connected to two of our clients so that we avoid &ldquo;profile building&rdquo; in our systems without consumer consent. We believe consumers should provide clear and explicit permission for use of their data, including how it will be used to perform the requested service. Regardless of what happens, we think Rule 1033 is a signal in the right direction by promoting secure, permissioned transfer of data, and is moving the industry away from less secure, more expensive screen scraping. 
<h2>5. Assessing risk in bank-fintech partnerships should put the consumer first.&nbsp;&nbsp;</h2>
We&rsquo;re committed to continuing to practice responsible, consistent due diligence in our bank-fintech partnership arrangements. We believe that risk assessments should be based on the level of risk to consumers, with higher-risk use cases (e.g., money movement, credit scoring) requiring more stringent controls. We will continue to protect consumer data through bilateral agreements and consistent due diligence practices, regardless of the current uncertainty among U.S. financial regulatory agencies.&nbsp;
<h2>Conclusion&nbsp;</h2>
Regardless of political headwinds and regulatory uncertainty, MX will continue to focus on open banking, financial inclusion, fraud prevention, privacy protection, and responsible risk assessments in bank-fintech partnerships. We believe that these principles will help us to create a more competitive and innovative financial services landscape that benefits consumers and businesses alike.
And, a financial ecosystem driven by these principles &mdash; which all tie back to protecting consumer-permissioned data &mdash; creates a win-win scenario for both consumers and financial institutions. Simply put, better data management leads to happier customers, increases engagement and retention, and drives growth from increased deposits and more. The financial institutions and fintechs who understand this and are already implementing open banking APIs and new data strategies are poised for success regardless of what happens in the new regulatory environment in the United States.&nbsp;

Prioritizing Consumer Outcomes In the Face of Uncertainty 

Money is a big source of stress for consumers, but they are optimistic about their ability to meet their financial goals in 2025.

MX research shows consumers are optimistic about their 2025 financial goals, and those goals vary by generation.

Understanding Consumer Financial Attitudes and Goals in 2025

A little more than half of consumers (51%) say money is their main source of stress. And, our latest survey shows 44% of <a href="https://www.mx.com/research/financial-apps-fall-short/">consumers struggle to make ends meet</a>. With this context, you might expect most consumers to have a negative attitude about their ability to meet their goals.&nbsp;
But, the opposite is true. The prevailing sentiment from consumers is optimism. Seventy-five percent of consumers are optimistic about achieving their top financial goal for 2025.
And, many say financial situations are improving &mdash; 34% say their financial situation is better than it was 6 months ago.&nbsp;
Why are consumers so optimistic? There are several key factors that contribute most to these feelings of optimism. Among those who are optimistic or very optimistic, top reasons include:&nbsp;
<ul>
<li style="font-weight: 400;" aria-level="1">42% their ability to manage their finances</li>
<li style="font-weight: 400;" aria-level="1">40% changes in their personal life</li>
<li style="font-weight: 400;" aria-level="1">28% increased pay</li>
<li style="font-weight: 400;" aria-level="1">27% the current economic environment</li>
<li style="font-weight: 400;" aria-level="1">26% low or no debt</li>
</ul>
Financial providers have an opportunity to lean into this optimism and help further ease the stress of money management. How? Personalization. Personalization. Personalization.&nbsp;
Financial providers can start by making a concerted effort to know their customers and personalize their experience. And, from the consumer&rsquo;s perspective, this personalization isn&rsquo;t just a recommendation &mdash;&nbsp;it&rsquo;s an expectation. Sixty-five percent of consumers agree they expect financial institutions to use the data they have about them to provide them with <a href="https://www.mx.com/products/financial-insights/" target="_self">actionable and clear insights</a> about their finances.
The first place to start on this personalization journey? Each generation has different financial priorities, which require different financial services and products to help them achieve their goals. For 2025, here&rsquo;s a breakdown of top financial goals by generation:&nbsp;
<h3>Gen Z</h3>
Gen Z finds themselves planning for big expenses &mdash;&nbsp;and saving money to pay for them. Out of all the generations surveyed, they had the highest percentage (62%) that reported they measure financial wellness based on their savings account balance. Their top goal for 2025? Save for a new car.&nbsp;
<h3>Millennials</h3>
Millennials continue to focus on becoming financially stronger with a common financial goal of improving their credit score. And, 42% of Millennials look to their credit score as a top metric for measuring financial wellness.&nbsp;
<h3>Gen X</h3>
As Gen X nears retirement age, it&rsquo;s no surprise they are focused on saving for retirement as their top financial goal for 2025. And, the top metrics they look at to measure financial wellness center on savings &mdash;&nbsp;savings account balances, retirement savings, household income, and more.&nbsp;
<h3>Baby Boomers</h3>
In just one year, Baby Boomers have shifted their top priorities when it comes to their finances. <a href="https://www.mx.com/research/how-to-keep-consumers-from-breaking-up-with-banks/">Last year</a>, the top goal for Baby Boomers was paying off credit card debt. Now, most Baby Boomers say they don&rsquo;t have one.

Consumer Financial Attitudes and Goals in 2025

MX’s latest consumer research touches on financial management, financial apps, and expectations for financial providers.

MX’s latest research consumers want more intuitive, data-driven tools to help them manage their money.

Is Financial Avoidance Becoming a Norm? MX Research Shows

MX&rsquo;s <a href="https://www.mx.com/research/financial-apps-fall-short/">latest consumer research</a> touches on many topics ranging from financial management, financial apps, and expectations for financial providers. One of the most fascinating finds? Nearly 1 in every 4 consumers are actively avoiding their finances.&nbsp;
The research shows 22% of consumers agree they avoid checking their finances if possible &mdash;&nbsp;while 33% of Gen Z and 28% of Millennials are living in this state of financial avoidance.&nbsp;&nbsp;
So how can financial providers help consumers better manage their finances when they are avoiding them? Our research shows consumers want more from the financial institutions and fintechs they trust to help them manage their money. And, it starts with building tools that are intuitive and integrated.&nbsp;
<blockquote>
&ldquo;Consumers are no longer satisfied with a hodgepodge of finance-related apps and disjointed money experiences,&rdquo; says Jane Barratt, Chief Advocacy Officer and Head of Public Policy, MX. &ldquo;But simply avoiding their finances is not the best alternative. Financial providers have an obligation and opportunity to help consumers achieve financial strength and lessen the stress of managing money.&rdquo;
</blockquote>
<h2>Combatting the Manual Burden of Money</h2>
MX&rsquo;s <a href="https://www.mx.com/research/financial-apps-fall-short/">survey</a> of more than 1,000 U.S. adults found that while financial accounts are the most common method for tracking and managing finances, manual processes aren&rsquo;t far behind. In fact, 24% of consumers use a spreadsheet or other manual processes to track their finances.&nbsp;
And, for those tracking their finances through their financial accounts (37%), most consumers are likely only seeing their finances frame by frame. This means they are likely missing the bigger picture in some cases. Most alarmingly, 14% of consumers still say they don&rsquo;t track their finances at all.&nbsp;
Why are people turning to spreadsheets and manual processes? The majority say it is easier for them to understand (65%) and gives them better control over their finances (57%). Financial providers have a significant opportunity to lessen this manual burden for consumers by delivering on tools that take these reasons into account &mdash;&nbsp;make it easier for them to understand and control their spending.&nbsp;
<h2>Using Consumer-Permissioned Data To Support a Better Experience&nbsp;</h2>
To deliver on consumer needs, financial providers already have the answer at their fingertips &mdash;&nbsp;leveraging the data they have about consumers to create more personalized experiences.&nbsp;
And, consumers are ready to share more data if it will deliver better experiences for them. Fifty-five percent of U.S. consumers agreed they would give their financial provider access to more of their data if they knew it would result in a better experience.&nbsp;
Check out other key stats from this latest research in the infographic below. And, <a href="https://www.mx.com/research/financial-apps-fall-short/">access the full report today</a> for even more insights.
<img src="https://assets.mx.com/infographics/financial-avoidance.png" alt="Q4 Consumer Report Infographic" />

Is Financial Avoidance Becoming a Norm?

By not having or not sharing financial data, consumers are at risk of becoming "under data-ed".

Financial providers will need to earn consumers’ trust in 2025 to avoid creating a class of “under-data’ed” consumers.

Gaining Trust Can Help Consumers From Becoming “Under-Data’ed”

Reading the term &ldquo;under-data&rsquo;ed&rdquo; might make you think we are making up words &mdash; and to be fair, we are. But this term describes a very real scenario that could become a growing challenge in 2025 and beyond.&nbsp;
We all know about the challenges faced by unbanked and underbanked households. Nearly 6 million households were considered <a href="https://www.fdic.gov/household-survey">unbanked in 2023</a> &mdash; meaning no one in the household had a checking or savings account with a bank or credit union. And, another 19 million households are underbanked, meaning they use nonbank products to meet their core financial needs.&nbsp;
To better serve these underserved consumers, many financial providers are turning to alternative data to improve risk profiling and credit decisioning capabilities. This use of alternative data in credit decisioning brings us close to the goal of financial health and inclusion for all Americans. But what happens when some consumers are wary of sharing their data?&nbsp;
That&rsquo;s how we came to the term &ldquo;under-data&rsquo;ed.&rdquo; Consumers who don&rsquo;t share financial data &mdash; or don&rsquo;t have data to share &mdash; have the potential to become a new class of underserved financial consumers.&nbsp;
Consumers that are unwilling to share their data will be at a disadvantage as financial providers increasingly leverage data to personalize products and offers, improve customer service, and support financial wellness.&nbsp;
The solution? It&rsquo;s about building trust by creating <a href="https://www.mx.com/research/financial-apps-fall-short/">relevant, personalized, and transparent experiences for consumers</a>.&nbsp;
<ul>
<li style="font-weight: 400;" aria-level="1">Relevant: 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">Personalized: 58% agree they expect their financial provider to leverage the data they have about them to personalize their experience&nbsp;</li>
<li style="font-weight: 400;" aria-level="1">Transparent: 80% agree it&rsquo;s important for them to know and manage who has access to their financial data</li>
</ul>
By offering relevant, personalized, and transparent experiences to consumers, financial service providers can build trust that earns access to a consumer&rsquo;s data and takes one step closer to making financial wellness a possibility for all Americans.&nbsp;
To see the rest of MX&rsquo;s predictions for 2025, check out the full <a href="https://www.mx.com/whitepapers/2025-predictions/">whitepaper</a> or watch the replay of our recent <a href="https://www.mx.com/webinars/top-trends-grow-desposits-engagement-2025/">webinar</a>.

How Building Trust Can Help Avoid “Under-Data’ed” Consumers

Cornerstone Advisors predicted what is coming in the banking industry based on a survey of banking and credit union executives. 

Key takeaways from the Cornerstone Advisors report highlight how financial leaders think about Open Banking, deposit growth, and data.

Cornerstone Advisors What’s Going On in Banking | Key Takeaways

The latest edition of Cornerstone Advisors&rsquo; <a href="https://www.crnrstone.com/gritty-insights/research/whats-going-on-in-banking-2025">What&rsquo;s Going On in Banking</a> study leads with an overwhelming sense of optimism, highlighting that &ldquo;optimism among bankers for the coming year is as high as it&rsquo;s been in a decade.&ldquo;&nbsp;
Among the 308 C-suite and senior leaders from financial institutions, 83% are &ldquo;very&rdquo; or &ldquo;somewhat&rdquo; optimistic about 2025 &mdash; with just one survey respondent that said they were &ldquo;very&rdquo; pessimistic. This is a significant increase over last year (60%). But, it is not all clear skies. The survey results also highlight a fair share of concerns.&nbsp;
So what is going on in banking this year? And, how can financial providers set themselves up for success? Here are 3 key takeaways that stuck out to us.
<ol>
<li>
<h3> Open Banking Opinions Vary</h3>
</li>
</ol>
According to the study, financial institutions are divided about the impact of the Consumer Financial Protection Bureau&rsquo;s <a href="https://www.mx.com/blog/cfpb-dodd-frank-section-1033/">Section 1033 rule</a>. Forty-two percent of executives think the rule will benefit consumers but only half of these respondents (21%) think it will also benefit financial institutions. The rest of the respondents? Twenty-seven percent aren&rsquo;t sure what the impact will be &mdash; and 32% are skeptical, thinking it won&rsquo;t benefit consumers or financial institutions.&nbsp;
Cornerstone&rsquo;s report emphasizes concerns with Open Banking, stating it &ldquo;places an excessive burden on individuals to manage complex data-related responsibilities.&rdquo; Yes, the rule does put consumers in the driver seat. But, MX&rsquo;s <a href="https://www.mx.com/research/financial-apps-fall-short/">latest consumer research</a> found many consumers say they want to be in control.&nbsp;
Our survey of more than 1,000 consumers shows that 80% said it was important for them to know and control who has access to their financial data. And, according to the Financial Data Exchange, more than <a href="https://www.financialdataexchange.org/FDX/FDX/News/Announcements/FDX%20Hits%2094%20Million%20Accounts,%20CFPB%20Publishes%20FDX's%20Standard-Setting%20Application.aspx#:~:text=Standard%2DSetting%20Application-,FDX%20Hits%2094%20Million%20Accounts%2C%20CFPB%20Publishes%20FDX's%20Standard%2DSetting,our%20Fall%20Adoption%20Metrics%20Survey.">94 million consumer accounts</a> are now actively utilizing its FDX API for secure open finance data sharing.&nbsp;
While financial institutions may be unsure about the impact of Section 1033, the impact of Open Banking is already apparent. The future of <a href="https://www.mx.com/blog/what-cfpb-turbulence-means-for-open-banking/">Section 1033 may be in the air</a> under the current administration but that doesn&rsquo;t mean Open Banking should slow down.&nbsp;
<ol start="2">
<li>
<h3> Top Concerns Focus on Growth&nbsp;</h3>
</li>
</ol>
Last year, the top concern for both banks and credit unions was the cost of funds. Now, deposits (52% of bankers said &ldquo;deposit gathering&rdquo; is their top concern) and new member growth (62% of credit union executives) top the list. Increased competition from fintechs, rising rates, and shifting consumer behavior are contributing to higher customer attrition and making it harder than ever to grow deposits.&nbsp;
To attract and retain deposits, banks and credit unions are prioritizing a number of strategies. When asked what is important in 2025, respondents place these strategies at the top of their list:&nbsp;
<ul>
<li style="font-weight: 400;" aria-level="1">Targeted pricing strategies to retain specific clients (73% banks; 56% credit unions)</li>
<li style="font-weight: 400;" aria-level="1">Revised deposit product tied to pricing (45% banks; 48% credit unions)</li>
<li style="font-weight: 400;" aria-level="1">New deposit products tied to pricing (37% banks; 45% credit unions)</li>
<li style="font-weight: 400;" aria-level="1">Create or enhance reward programs (26% banks; 46% credit unions)</li>
</ul>
There is no easy button for growing deposits or new members. And, the results show that banks and credit unions are looking across a number of tactics to incentivize and retain customers and members to take action.&nbsp;
<ol start="3">
<li>
<h3> Data Remains Key but Data Strategies Fall Short&nbsp;</h3>
</li>
</ol>
The report calls out that data will be critical to Gen AI initiatives, pointing back to statements in last year&rsquo;s report about the need to evaluate the &ldquo;quality, availability, and accessibility of specific types of data.&rdquo; In this year&rsquo;s report, Cornerstone asked respondents to evaluate the quality of their data strategy, governance, and use of data. Simply put: we have work to do.&nbsp;
Only 6% of banks and 11% of credit unions assessed their data strategy as very effective, while how effectively they are using data is even lower. Nearly half of bank leaders said their use of data to enhance the customer experience (48%) and operational efficiency (49%) is not effective. Among credit unions, 34% say their use of data to enhance the member experience is not effective and 42% say using data to enhance operational efficiency is not effective.&nbsp;&nbsp;
<a href="https://www.mx.com/whitepapers/2025-predictions/">Data will be the central piece</a> in every financial provider&rsquo;s strategy in 2025. And, those who get it right will be light years ahead of the competition when it comes to meeting customer needs and growing deposits.&nbsp;
These are just a few highlights from this year&rsquo;s 62-page What&rsquo;s Going On In Banking report from Cornerstone Advisors and Ron Shevlin. For a look at what MX believes 2025 will bring, be sure to also check out our recent <a href="https://www.mx.com/webinars/top-trends-grow-desposits-engagement-2025/">2025 Predictions Webinar</a>.

What’s Going On In Banking? Key Takeaways

Our Data Enhancement solution just got its own wave of enhancements to deliver even more value for you and your customers. 

Request a demo today to see how MX's Data Enhancement can deliver more value for you and your customers. 

New product updates to MX’s Data Enhancement deliver more insights and value to customers.

Data Enhancement Product Updates: Geolocation, Merchant Coverage, and More

Raw transaction data is often messy, vague, or convoluted &mdash;&nbsp;causing more confusion and concern for customers and leaving you to make business decisions based on incomplete or inaccurate information. That&rsquo;s why <a href="https://www.mx.com/blog/what-is-data-enhancement/">data enhancement</a> should be a critical part of any financial institution or fintech&rsquo;s data strategy.&nbsp;
<a href="https://www.mx.com/products/data-enhancement/" target="_blank" rel="noopener">MX&rsquo;s Data Enhancement</a> leverages machine learning, multi-stage data cleansing, and additional rule-based logic to transform raw transaction data. We take data from messy and confusing to enriched, easy-to-understand datasets. With MX Data Enhancement, you can open up new opportunities to improve experiences, deliver on customer needs, and drive growth.&nbsp;
And, our <a href="https://www.mx.com/products/data-enhancement/" target="_self">data enhancement solution</a> just got its own wave of enhancements to deliver even more value for you and your customers. Over the last few months, MX has rolled out a number of improvements to expand the features, functionality, and experiences available.&nbsp;
These upgrades include machine learning for merchant identification, geolocation, and new repeating transactions.
<h2>Machine Learning: Geolocation</h2>
Increasing our geolocation coverage is one of the most foundational improvements made to Data Enhancement this year.
With geolocation, financial institutions can access geographical insights into where their transactions occur &mdash; giving them new ways to segment audiences and deliver the right offers and messages to the right customers.&nbsp;
Although geolocation has been an aspect of Data Enhancement for years, machine learning has powered a dramatic increase in the number of transactions with physical location information. Being able to distinguish between in-person and online transactions helps drive more accurate spending analysis, fraud detection, and personalized financial insights.&nbsp;
<h2>Machine Learning: Merchant Coverage</h2>
Data Enhancement has delivered a dramatic uptick in merchant details coverage with artificial intelligence and machine learning. We now have access to more than 633,000 total merchants, with thousands more being added each day.
This increased merchant coverage means nearly every transaction is clearly labeled and categorized for consumers, ensuring they understand every transaction in their history. The addition of new merchants also increases the geolocation coverage.
<h2>Repeating Transactions API</h2>
Financial institutions can now gain better visibility into consumers&rsquo; repeating transactions so they can help them plan ahead for expenses like recurring bills and subscriptions, as well income deposits. When combined with <a href="https://www.mx.com/products/personal-financial-management/">MX&rsquo;s Personal Financial Management</a> solution (coming later this year), consumers will also be able to access unparalleled insights into their transactions and finances as a whole.
This is just scratching the surface. At MX, we are already thinking about new models to gain better (and more accurate) insights into other recurring transaction types.&nbsp;
These are just a few of the latest enhancements to Data Enhancement to deliver even better outcomes for financial providers and consumers. Data Enhancement can level up the customer experience and drive retention with more simplified, centralized, and transparent transaction management.
<a href="https://www.mx.com/request-demo/" target="_blank" rel="noopener">Request a demo today</a> to see how MX's Data Enhancement can deliver more value for you and your customers.&nbsp;

Data Enhancement Product Updates: Maximizing Geolocation and Merchant Coverage

We believe that consumer-permissioned data access is the right path forward despite uncertainty about the CFPB’s future. 

Open banking is the right path forward despite uncertainty about the CFPB’s future.

Turbulence at the CFPB — What It Means for Open Banking

Like many in the financial services industry, we have been following the rapid changes at the Consumer Financial Protection Bureau (CFPB). To recap:&nbsp;
<ul>
<li style="font-weight: 400;" aria-level="1">On Jan. 31, former CFPB Director Rohit Chopra was dismissed from his post and newly appointed Treasury Secretary Scott Bessent briefly took the reins as Acting Director.&nbsp;</li>
<li style="font-weight: 400;" aria-level="1">On Friday, Feb. 7, Russell Vought became Acting Director of the CFPB.&nbsp;</li>
<li style="font-weight: 400;" aria-level="1">Over the weekend, CFPB staff received a series of emails instructing them to cease performing all supervision and examination work tasks.&nbsp;</li>
<li style="font-weight: 400;" aria-level="1">In addition, the CFPB staff were informed that the CFPB&rsquo;s headquarters is closed this week (Feb. 10-14) and all employees and contractors in Washington should &ldquo;work remotely unless instructed otherwise from our Acting Director or his designee.&rdquo;</li>
</ul>
Understandably, this is creating an environment of confusion and uncertainty for participants in the financial data ecosystem. As long-time advocates of Open Banking, MX is focused on how these changes could affect the future of regulations related to Open Banking such as <a href="https://www.mx.com/blog/cfpb-dodd-frank-section-1033/">Section 1033 of the Dodd-Frank Act</a>.&nbsp;
Section 1033 became effective on Jan. 17, 2025. As a result of this effective date, it presently still stands, and its tiered compliance deadlines remain in place, with the first deadline in April 2026.&nbsp;
However, with this rapid pace of change under the current administration, anything could happen in the coming weeks and months. We will continue to keep ourselves updated on these shifts and share insights with our clients and the broader ecosystem. And, our focus on ensuring our products and services comply with Section 1033 will continue.&nbsp;
For more than a decade, MX has been a leader in Open Banking and consumer-permissioned data sharing. Our <a href="https://www.mx.com/products/data-access/">Data Access</a> solution combines an API platform that meets FDX standards with built-in analytics to create actionable intelligence.&nbsp;
But, we aren&rsquo;t champions of Open Banking because of regulatory compliance requirements. We truly believe that Open Banking creates a competitive advantage for financial institutions, an engine of innovation and growth for fintechs, and helps enable financial strength for consumers.&nbsp;
<h2>A Competitive Advantage for Financial Institutions</h2>
Consumers want personalized products, services, and offers across mobile and digital experiences. However, most financial institutions are missing key details on where consumers share data &mdash; details they can gain from Open Banking. What&rsquo;s more, <a href="https://www.mx.com/research/financial-apps-fall-short/">consumers are willing to share even more data</a> if they know it will result in a better experience.&nbsp;
<h2>An Engine for Fintech Innovation and Growth&nbsp;</h2>
For fintechs, interoperable open banking platforms and connections can deliver significant benefits to drive innovation and growth forward. It can help increase market reach, lead to faster integrations and reduce time to market for product launches, generate partnership opportunities, improve scalability, and lead to cost savings.&nbsp;
<h2>An Enabler of Financial Strength for Consumers</h2>
Open Banking puts consumers in control of their data, as well as creates a more secure ecosystem by eliminating the need to share credentials to access data or link accounts. 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. And, they gain unparalleled access to a broader range of products and services.&nbsp;
Open Banking (and Open Finance) 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. Regardless of regulatory churn, this doesn&rsquo;t change. Open Banking is here and already well adopted across the globe.
We believe that consumer-permissioned data access is the right path forward despite uncertainty about the CFPB&rsquo;s future. We are committed to supporting our clients through this time of dynamic shift in technology, consumer expectations, and politics.&nbsp;

The Promise of Open Banking Persists in the Face of Turbulence at CFPB

To succeed with AI, financial providers need to prioritize getting their data strategy right first.

Successful AI Use Cases Begin with a Strong Data Strategy

&ldquo;What we&rsquo;re seeing around AI&hellip; it&rsquo;s still a large and very expensive, maybe even the largest and most expensive science project that we&rsquo;ve ever endeavored on in humanity. There&rsquo;s still a lot to be proven,&rdquo; <a href="https://www.mx.com/webinars/top-trends-grow-desposits-engagement-2025/">said James Dotter</a>, MX&rsquo;s Chief Business Officer.&nbsp;
There is a lot of opportunity and investments &mdash;&nbsp;and hope &mdash; being put into artificial intelligence. <a href="https://www.cio.com/article/3601606/cios-to-spend-ambitiously-on-ai-in-2025-and-beyond.html#:~:text=Research%20firm%20IDC%20projects%20worldwide,to%20%24749%20billion%20by%202028.">IDC estimates</a> worldwide spending on technology to support AI strategies will reach $337 billion in 2025 &mdash; and more than double to $749 billion by 2028.
But can AI live up to these expectations and investments? Or is it just an expensive science project? <a href="https://www.mckinsey.com/capabilities/quantumblack/our-insights/the-state-of-ai">McKinsey&rsquo;s latest global survey on AI</a> shows that while adoption has increased significantly across organizations and industries, the breadth of adoption remains low and many organizations are still in the experimental phase.&nbsp;
While AI can help create personalized customer experiences, streamline inefficient processes, and uncover new growth opportunities, it&rsquo;s <a href="https://www.mx.com/guides/risks-rewards-ai/">only as good as the data that fuels it</a>. To succeed with AI, financial providers need to prioritize getting their data strategy right first.
<h2>Starting off with the Right Data</h2>
Too often, AI users find themselves hung up on the outcomes of AI and neglect the starting point. At <a href="https://www.mx.com/summit/2024/know-your-customers/">Money Experience Summit 2024</a>, Dr. Leda Glyptis said, &ldquo;I care about the organizational hang ups that will always forever make the job an uphill struggle no matter how intelligent you get about AI.&rdquo;
Using AI for the sake of AI will not solve operational efficiency problems until teams can assess their starting point. That starting point is data.
Here are two areas where financial institutions and fintechs can focus first to ensure quality data to fuel their AI use cases:&nbsp;
<h3>1. Break Down Data Siloes</h3>
The average consumer has at least 5 or more financial accounts with various banks, credit unions, and other financial providers. This disjointed money experience leaves consumers &mdash; and the financial providers who serve them &mdash; with only part of the picture.&nbsp;
Without <a href="https://www.mx.com/guides/why-connectivity-is-critical/">connecting those various accounts and sources of financial data together</a>, organizations face significant blindspots 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;
This means AI systems will face the same blindspots, leading to inaccurate data and even the potential for AI hallucinations. In fact, popular AI models like ChatGPT and Google&rsquo;s PaLM <a href="https://fortune.com/2024/01/17/ai-hallucination-aporia-survey/">make up facts anywhere from 3% to 27% of the time</a>, depending on the tool. And, <a href="https://www.fastcompany.com/91016960/ai-skills-potential-employers">89% of machine learning (ML) engineers</a> who work with generative AI say their models show signs of hallucination.&nbsp;
<h3>2. Transform Raw Data into Clear Insights</h3>
Poor data quality can be costly for businesses. <a href="https://www.fivetran.com/blog/new-ai-survey-poor-data-quality-leads-to-406-million-in-losses">Vanson Bourne and Fivetran</a> found that models trained on inaccurate, incomplete, and low-quality data caused misinformed business decisions that impacted an organization's global annual revenue by 6%, or $406 million on average.
In the financial industry, the stakes are even higher &mdash; unclear, raw data doesn&rsquo;t just impact businesses. It can negatively affect customers. For AI, it means garbage in, garbage out.&nbsp;
Raw transaction data is messy and confusing &mdash; so outputs from AI tools based on this data will likely also be messy and confusing. No one can take action based on random strings of characters. Enter <a href="https://www.mx.com/blog/what-is-data-enhancement/">data enhancement</a>, which transforms raw, chaotic transaction data into enriched, structured, and actionable insights.
MX&rsquo;s Chief Advocacy Officer Jane Barratt said, &ldquo;You can&rsquo;t jump over a lack of data strategy and go straight to AI.&rdquo; Businesses that want to excel in their AI adoption and stand out from the competition must rethink their data strategy &mdash; from data collection through implementation.&nbsp;
Want to read more about our take on AI in 2025 and other top trends? <a href="https://www.mx.com/whitepapers/2025-predictions/">Access our 2025 predictions report</a>.&nbsp;

Artificial Intelligence: How to Move from Science Project to Value Add for Banks 

Fraud prevention is a constantly evolving challenge that requires ongoing collaboration and innovation.

Fraud prevention is a constantly evolving challenge that requires collaboration and innovation to build a safer, more secure financial ecosystem for everyone.

Fighting Fraud with Open Finance, Data Literacy, and More

Financial fraud is a huge problem in this country, and it&rsquo;s not going away any time soon. In fact, its continued rise is one of our <a href="https://www.mx.com/webinars/top-trends-grow-desposits-engagement-2025/">key predictions for 2025</a>. Fraudsters are often the early adopters of every advancement in technology &mdash; so financial institutions and fintech alike need to keep investing to protect their customers from fraud. And, it&rsquo;s just because it&rsquo;s the right thing to do. It is essential for customer retention.&nbsp;
<h2>Fraud is Now Part of American Daily Life</h2>
The statistics are staggering, and getting worse each year. According to the Federal Trade Commission (FTC), consumers reported losing more than <a href="https://www.ftc.gov/news-events/news/press-releases/2024/02/nationwide-fraud-losses-top-10-billion-2023-ftc-steps-efforts-protect-public">$10 billion to fraud in 2023</a>. This was a 14% increase from 2022.
When I was in the process of purchasing a house in Utah, I almost became part of this statistic. Fraudsters hacked into the email system of the title company we worked with, and spoofed its email with one letter changed in the email address. They sent us wire transfer instructions including the exact, correct amount of money for our down payment. They even had links in the email to a fake version of the title company&rsquo;s website, with fake phone numbers and emails to contact if we had questions.&nbsp;
This fraud attempt was so convincing that we hit send and almost lost an unthinkable amount of money to the scammers. Thankfully, our friends at USAA had systems in place to detect abnormalities in the transaction, and put a hold on the transaction until we called them. Let me tell you &ndash; nothing inspires institutional loyalty more than an experience like this with a bank. We&rsquo;ll be USAA customers for life.&nbsp;&nbsp;
Unfortunately, many Americans aren&rsquo;t as lucky. A recent study revealed that <a href="https://www.ipx1031.com/fraud-and-identity-theft-in-america/">30% of Americans have been scammed</a> in the last 12 months, and 40% receive suspicious emails, messages, or phone calls every day.&nbsp;
While the increased digitization of the financial world makes our lives exponentially easier every year, it also leads to an increase in certain types of fraud. Technology makes it challenging for even the most vigilant consumers and financial institutions to detect and prevent fraud.&nbsp;
<h2>Technology is the Problem&hellip;</h2>
<h3>Traditional Technologies</h3>
Phone calls, text messages, and emails are a key access point to consumers that scammers use to illegally gain access to financial data through impersonation, fake email links (phishing), and fraudulent requests for personal information &ndash; often tricking individuals into revealing sensitive details such as passwords, account numbers, or Social Security numbers. The ubiquity of these technologies makes them attractive to scammers, who can make hundreds of attempts per day, and only need one hit with an unsuspecting consumer to succeed.&nbsp;
<h3>Generative Artificial Intelligence</h3>
Fraudsters now have access to powerful tools like generative AI to make deepfake videos, fictitious voices and fake documents easily and cheaply. A bad actor can mock up a fake image of a government-issued ID in seconds, making traditional methods of identity verification less secure. Generative AI can be used to craft more sophisticated phishing emails, malware, and social engineering attacks, targeting financial institutions and their customers with highly personalized and believable content.&nbsp;
<h3>Quantum Computing</h3>
Currently, bank transactions are protected by cryptographic algorithms, better known as encryption technology, which currently ensures the private, safe and secure transfer of your financial data. But according to experts, quantum computers will soon be able to break traditional encryption algorithms &mdash; threatening standard security protocols that banks and fintech currently rely on to keep their customers safe. That would also upend security in the cryptocurrency space, requiring Bitcoin and other popular cryptocurrencies to update their protocols to use post-quantum encryption.&nbsp;
<h2>&hellip; And Technology (and Awareness!) Is the Solution</h2>
So, what chance do banks and fintechs have against these rapidly evolving technologies and emboldened scammers? There is a lot that financial institutions and fintechs can do to protect themselves and their customers from fraudulent transactions.
<h3>Continually Educate Your Customers</h3>
One of the most important things you can do to support your customers in the fight against fraud is to educate them about it. There are a number of things you can do to develop a robust fraud prevention education campaign:&nbsp;
<ul>
<li style="font-weight: 400;" aria-level="1">Engage in proactive customer communications that share examples of recent scams</li>
<li style="font-weight: 400;" aria-level="1">Conduct fraud awareness campaigns through email and social media, as well as provider educational workshops and seminars&nbsp;</li>
<li style="font-weight: 400;" aria-level="1">Educate your customers on tools they can use to protect themselves like multi-factor authentication and spending alerts</li>
<li style="font-weight: 400;" aria-level="1">Educate your customers on common scams and typical entry points (phishing, romance scams, card skimming)</li>
<li style="font-weight: 400;" aria-level="1">Partner with government agencies and advocacy groups to expand the reach of your anti-fraud resources&nbsp;</li>
</ul>
<h3>Modernize Your Systems</h3>
Banks must take a proactive, forward-looking approach to counter the growing threats posed by generative AI, advanced email and phone scams, and the emerging risks of quantum computing. These technologies threaten many of the traditional methods of security that we&rsquo;ve come to rely upon as a society &mdash; and all businesses, especially financial institutions, will need to step up their game to meet the new reality.
The adoption of <a href="https://www.mx.com/blog/what-is-open-banking/">open banking</a> APIs can help <a href="https://www.mx.com/use-cases/fraud-risk-management/">mitigate fraud</a>. Secure APIs for financial data sharing provide a <a href="https://www.mx.com/whitepapers/how-open-finance-improves-security/">significant opportunity</a> to alleviate security concerns and improve the experience for the consumer by offering:&nbsp;&nbsp;
<ul>
<li style="font-weight: 400;" aria-level="1">Tokenized data connections that take consumer credentials out of the ecosystem where they can land in the wrong hands&nbsp;</li>
<li style="font-weight: 400;" aria-level="1">Reliable access to accurate financial data that is permissioned by the consumer</li>
<li style="font-weight: 400;" aria-level="1">Compliance with new regulations that establish industry standards, help protect consumers and ensure consumers have control over their data</li>
</ul>
Businesses can also leverage AI and machine learning to enhance fraud detection by establishing behavioral baselines for customers, flagging anomalies like unusual spending patterns or login locations.&nbsp;
Another useful tool is to employ risk-based authentication that can dynamically adjust security protocols based on the context of a transaction (e.g., applying stricter controls for high-value transactions or risky geolocations).
<h3>Don&rsquo;t Go It Alone</h3>
Meeting the future needs of fraud detection and prevention will take collaboration across the financial data ecosystem to keep consumers&rsquo; data safe. MX provides support in building secure APIs connections, and end solutions like <a href="https://www.mx.com/products/instant-account-verifications/">account verification</a>, behavior analytics, and proactive alerts all work in concert to keep a customer&rsquo;s data safe. Innovative companies like Sardine.ai are providing AI technology to detect fraud are joining the market to help fintech and banks use AI to detect and prevent fraud in cutting edge ways.&nbsp;
And, public-private partnerships that drive awareness and collaborative execution to fight fraud are gaining traction around the country, including here in Utah. At MX, we&rsquo;reworking with the Utah Bankers Association to participate in the newly-formed Utah Fraud Prevention Coalition because we know how important this issue is for financial institutions and consumers alike. Partnership across the industry is a key ingredient to effectively fight against fraud and scams.&nbsp;
<h2>Policy Recommendations</h2>
There are many ways that the U.S. Congress and federal agencies can help combat fraud and scams. Some key areas of focus should be:&nbsp;
<h3>Consumer Control Over Data Sharing</h3>
Americans deserve clarification and enforcement of their data rights as consumers. The final <a href="https://www.mx.com/blog/cfpb-dodd-frank-section-1033/">Section 1033</a> rule is a great starting point for this, but consumers deserve clarity across all their online data. Federal privacy legislation that codifies a consumer&rsquo;s data rights should be a priority for this session of Congress. Strong privacy protections would not only enhance trust in financial institutions but also empower consumers to take charge of their financial security in an increasingly interconnected world.
<h3>Account Verification Requirements</h3>
Secure account verification is such a useful tool in verifying that money is going where it&rsquo;s supposed to go. Implementing robust verification measures reduces the risk of fraud, ensures accountability, and builds confidence in financial transactions. By mandating secure account verification processes for large transfers, financial institutions can prevent fraudsters from exploiting system vulnerabilities and protect consumers from devastating financial losses.
<h3>Financial and Data Literacy&nbsp;</h3>
The next generation of Americans would benefit enormously from strong financial literacy programs in schools to educate students about how to manage their money effectively and avoid financial scams. We support legislation like H.R.2943, the Student Empowerment and Financial Literacy Act, which was introduced in the last Congress to establish a competitive grant program to increase financial literacy instruction in elementary schools and secondary schools. But, we also believe that we should consider data literacy the next educational frontier for consumers.&nbsp;
This will set up the next generation of Americans to understand how to manage their digital data AND make informed financial decisions to build wealth and safeguard their financial futures.
Fraud prevention is a constantly evolving challenge, but with collaboration, education, and innovation, financial institutions, policymakers, and consumers can work together to build a safer, more secure financial ecosystem for everyone. We look forward to playing our part.

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Blog

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MX Founder Ryan Caldwell Returns as Chief Executive Officer

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Trust vs. Use: How Consumers Feel About Adopting AI

Prioritizing Consumer Outcomes In the Face of Uncertainty

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Is Financial Avoidance Becoming a Norm?

How Building Trust Can Help Avoid “Under-Data’ed” Consumers

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Data Enhancement Product Updates: Maximizing Geolocation and Merchant Coverage

The Promise of Open Banking Persists in the Face of Turbulence at CFPB

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Fraud (and Fighting It) is the Future