MX 2025 Predictions | Grow Deposits and Engagement

1033 Is Here: Quick Guide for Data Providers

A Primer on Banking APIs, OAuth, and Screen Scraping

CFPB’s 1033 is Here | What It Means for You

The Consumer Financial Protection Bureau&rsquo;s new rule under Section 1033 of the Dodd-Frank Act has arrived. Are you ready for it?
Watch this recorded conversation with policy experts and MX product leaders to hear more about:
<ul>
<li>Key changes in the final rule and what they mean for you</li>
<li>Where to get started on your road to compliance, and how to go beyond compliance to tap into new opportunities</li>
<li>MX&rsquo;s Data Access &mdash; the only solution that combines an API platform that meets FDX standards with built-in analytics that deliver actionable intelligence.</li>
</ul>

MX Product Forum | Sharpening Focus, Enhancing Value

On-Demand Replay: The Road to 1033

We&rsquo;re now just weeks away from the anticipated final Section 1033 rulemaking from the Consumer Financial Protection Bureau. Is your organization ready to tackle both the new opportunities and new regulatory obligations ahead?
Watch this conversation with policy experts and MX product leaders to hear more about:
<ul>
<li>Moving beyond a compliance conversation to understanding how to improve outcomes for consumers and gain a competitive advantage</li>
<li>How MX&rsquo;s Data Access combines an API platform that meets FDX standards with built-in analytics that deliver actionable intelligence</li>
<li>Where you can start today with meeting expected compliance obligations and delivering the best experiences for your customers</li>
</ul>

The Missing Link: Where Banks May Be Failing Consumers 

Why Enabling Secondary Use Cases for Consumer Benefit is Critical 

55 Years of Technology in Banking

Why Connectivity is Critical 

Move From Wasted Data to Maximized Intelligence | Product Forum

Understanding the Journey Stages of Open Finance

The Risks and Rewards of AI in Banking 

Infographic: AI in Banking Risks and Rewards

How MX Protects Your Data

How to Drive Engagement When Consumers Refuse to Change

How MX’s Data Access Can Help Financial Providers Get Ready for Section 1033

Getting Ready for Section 1033 Obligations: Where Financial Providers May Fall Short

How to Build Long-Term Digital Engagement

Unlocking Actionable Intelligence | MX Innovation Forum

Opportunity And Growth In Financial Services: Turning Data Insights into Actionable Intelligence

Unlocking Actionable Intelligence: Key Takeaways from Forrester Opportunity Snapshot

Reliable Account Aggregation and Digital Verifications

MX + YNAB Empowering Financial Strength

Taking Personalized Digital Banking to the Next Level: How to Drive Engagement and Value

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The majority of consumers expect their financial provider to know them. But that means more than just knowing their ZIP code, FICO score, or income. Unique individuals with unique needs want &mdash; and demand &mdash; a personalized money experience, not generic account updates and reminders.
Finastra partners with MX to provide engaging money management features as part of the Finastra Fusion digital banking platform, including MX Personal Financial Management (PFM) and Insights. These tools translate consumer financial data into actionable intelligence to deliver personalized experiences, drive consumer engagement, and support financial wellness.
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<h2>Watch this webinar and demo to learn how to:</h2>
<ul>
<li>Drive engagement and strengthen relationships with data-driven insights and money management experiences</li>
<li>Unlock financial data to create actionable and intuitive experiences that drive better outcomes</li>
<li>Leverage MX PFM and Insights to deliver timely, relevant guidance to help consumers reach their financial goals</li>
</ul>
</div>
</div>

MX Comments on the CFPB’s Required Rulemaking on Personal Financial Data Rights

Adding Context and Clarity to Transaction Data

The Year of Financial Data Intelligence — How to Win and Retain Customers in 2024

<div>
What will be the difference for financial institutions and fintechs to win in 2024? Join us for a deep dive into whats on the horizon, including Open Banking growing pains, the next generation of financial wellness tools, and the future of AI and personalization &mdash; and a peek into how financial data intelligence can be a differentiator for your organization.
<h2>Watch this Webinar to Learn:</h2>
<ul>
<li>4 predictions for 2024 for the financial industry landscape</li>
<li>How to unlock new insights and opportunities with your financial data</li>
<li>Best practices for winning and retaining deposits &mdash; and engaging customers for the long term</li>
</ul>
</div>

How to Keep Consumers from Breaking Up with Banks

4 Predictions for 2024: The Year of Financial Data Intelligence

Stronger Financial Outcomes with Personalized Insights

Embedded Financial Wellness Tools

Personal Financial Management Done Right

Streamlining Account Openings

Driving Engagement with Personalized Insights

Digital Money Management | Increased Adoption with Deeper Integrations

Putting the Personal in Personalized Digital Banking: How to Build Engagement and Lasting Relationships

Consumers are more than just a zip code, FICO score, or income. We&rsquo;re unique people with unique stories that require a personalized experience to meet our needs. Today&rsquo;s digital banking experiences require the right balance of automation and personalization that meet consumers where they are.
MX partners with NCR to provide MX Insights &mdash; a personalized feed of real-time financial insights &mdash; which integrates seamlessly with the NCR digital banking platform and will be available to NCR customers early next year.
Join This Webinar and Demo to Learn How to:
<ul>
<li>Build trust and strengthen relationships with data-driven insights and experiences</li>
<li>Unlock financial data to create actionable intelligence and intuitive experiences that go beyond account balances and generic reminders</li>
<li>Leverage MX Insights to deliver timely, relevant guidance and insights to help consumers reach their financial goals</li>
</ul>

Building a Customer-Centric Future

Improving Customer Outcomes Through Digital Engagement

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Data-Driven Digital Innovation

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Financial Wellness | OurBanc

Mobile Banking and Financial Insights | First Hawaiian Bank

Abby Bank

Viva First

Delivering Financial Solutions to the Latinx Community

MXS Rewind 2023

Financial Wellness for the Masses: Getting Personal Financial Management Right

From Money to Data to Trust: How Open Finance Improves Security

MX Insights Demo - Erin Caldwell

Winning the Fight for Customer Loyalty and Business Growth | MX Innovation Forum

What Influences Where Consumers Choose to Bank

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

A Conversation with Moneytree and Matrix

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

How Open Finance Creates a Better Money Experience

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MX Product Forum: Data Access

A Time for Trust: The Consumer Money Experience 

Riff on a Lift | Finance & Fintech Industry Discussions

Fintech Festival On-Demand Keynotes

What Consumers Really Want from their Financial Providers: A 2023 Roadmap

Fintech Functionality to Drive Customer Engagement and Loyalty

More than half of consumers say they would seek out a new financial provider if their current one couldn&rsquo;t deliver on their most wanted features. Are you focusing on the right mobile and digital features to keep consumers for the long term?
Consumers want &mdash; and need &mdash; more from fintechs to meet rising expectations and money worries. More personalized. More proactive. More connected. More data. Register to hear key insights from MX&rsquo;s latest research into what functionality matters most for consumers and how to drive higher customer engagement and loyalty in 2023 and beyond.
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<h3>Watch This Webinar, To Learn:</h3>
<ul>
<li>The features and functionality that consumers really want and expect from financial providers</li>
<li>Meeting rising demands for data sharing and ownership</li>
<li>Striking the balance of digital innovation and security</li>
</ul>

What Consumers Really Want from Financial Institutions: Your 2023 Roadmap to Success

One in 4 consumers feel that financial providers don&rsquo;t do enough to support their financial needs. Consumers want &mdash; and need &mdash; more from financial institutions to meet rising expectations and money worries. More personalized. More proactive. More connected. More data.
Now more than ever, financial institutions have an opportunity to take a bigger role in the lives of consumers. Register to hear key insights from MX&rsquo;s latest research on what consumers want and how to drive higher customer engagement and loyalty in 2023 and beyond. 
<h3>In This Webinar, You'll Learn:</h3>
<ul>
<li>How financial inclusion and literacy could help to unlock stronger engagement and build more loyal customers</li>
<li>What are the features and functionality that consumers really want and expect from financial institutions</li>
<li>How to meet consumer demand for data ownership, control, and sharing</li>
</ul>

What Does the Future Hold for Finance and Fintech?

Data Enhancement | I Hate Receipts

How Open Banking Works

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Consumer Money Matters: Debt on the Rise, Savings on the Decline

The Banking Experience Gap: 4 Disconnects Between Financial Institutions and Customer Expectations

MXS Rewind 2022

Matrix Rental Solutions Taps into the Power of Real-Time Data

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The Gaps in Financial Data

The Value of Open Banking and Choosing the Right Data Partner

Open Banking Data Partner Request for Information Starter Kit

5 Questions in 25 Minutes With Cornerstone Research

Every financial institution and fintech is looking to data aggregation to help them deliver on the promise of Open Banking, and more broadly, Open Finance. But there&rsquo;s no roadmap for how to pick the right data aggregator. Until now&hellip;&nbsp; This session dives into 5 critical questions in 25 minutes on data aggregation.

Selecting an Open Banking Data Aggregation Vendor

Open Finance: Unlock Data and Limitless Innovation

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2022 Digital Banking Trends and Predictions

<h3>2022: A Pivotal Year Redefining Primary Banking Relationships</h3>
Join MX and Javelin Strategy &amp; Research for a 30-minute session exploring Javelin's 2022 Digital Banking Trends and Predictions. Learn how eroding primary banking relationships and financial fitness will define 2022, while gaining recommendations for your digital banking strategies.

The Future of Open Finance

Maps Credit Union Gives Members Improved Visibility with MX Data

Gen Z & Millennial Banking Perspectives and 2022 Predictions

Join MX, Q2, Finn AI and Rival Technologies as they share new research on how the past year has changed customer preferences toward banking services and engagement for Gen Z &amp; Millennials. Our expert panel will also share predictions for what this means for your 2022 digital banking.
&nbsp;
<h3>Specifically, You'll Learn About:&nbsp;</h3>
<ul>
<li>Highlights from the joint research study comparing generational perspectives</li>
<li>How innovative digital banking leaders are responding to these trends</li>
<li>Predictions on digital banking and what priorities matter most in 2022</li>
</ul>
&nbsp;

The Points Guy App Simplifies Award Travel

Research shows connectivity gap, the price of bad mobile experiences, declining summer spending, and growing trust in artificial intelligence


Consumer Research Shows Where Banks May Be Failing Consumers 

Connect the dots. We&rsquo;ve all played this puzzle game at some point in our lives. At first glance, you see a disjointed series of dots. But, once you take that pencil and connect them, the picture becomes clear. Consumers face a similar puzzle when it comes to their finances.&nbsp;
The average consumer has at least 5 or more financial accounts with various banks, credit unions, and other financial providers. This disjointed <a href="https://www.mx.com/research/money-experience/">money experience</a> leaves consumers &mdash; and the financial providers who serve them &mdash; with only part of the picture.&nbsp;
<img src="https://cms.mx.com/assets/6aebfb27-1dd4-401a-bbe2-813201eb79b0?width=1200&amp;height=967" alt="Disjointed Financial Data" />
Without connecting those various accounts and sources of financial data together, consumers may struggle to truly understand and manage their finances. And, 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. This highlights the crucial role of reliable and secure <a href="https://www.mx.com/blog/what-is-account-aggregation/">account aggregation</a>.&nbsp;
<h2>Creating a Competitive Advantage with Connectivity</h2>
Consumers have more choice than ever. In the U.S. alone, there are <a href="https://www.mx.com/blog/biggest-banks-by-asset-size-united-states/">more than 4,500 banks</a> and <a href="https://www.mx.com/blog/biggest-us-credit-unions-by-asset-size/">another 4,500+ credit unions</a> &mdash;&nbsp;in addition to hundreds of different credit cards, lenders, fintechs, and payment apps.&nbsp;
With a myriad of financial accounts spread across financial services providers and little patience for slow or subpar experiences, how can you ensure your organization is top of mind and top of wallet for consumers? Financial providers who will win in today&rsquo;s competitive market are those who offer an easy way for consumers to keep sight of their full financial picture with connected, data-driven experiences.&nbsp;
<img src="https://cms.mx.com/assets/49edc862-cbd1-480e-b22a-e09b30b324b7?width=1200&amp;height=627" alt="Result" />
Forty-four percent of U.S. adults have <a href="https://www.mx.com/research/how-to-keep-consumers-from-breaking-up-with-banks/">used digital tools to bring different financial accounts into one view</a>. This <a href="https://www.mx.com/products/account-aggregation/">account aggregation</a> allows them to consolidate their finances into a single view rather than needing to login to multiple accounts to see what&rsquo;s going on with their finances.&nbsp;
By enabling consumers to easily connect all of their financial accounts into a single place, financial institutions can drive higher levels of engagement, <a href="https://www.mx.com/blog/demand-for-personalized-money-experiences/">deliver more personalized experiences</a>, and gain greater intelligence about their customers. Ultimately, this can translate to higher deposits, loans, and interchange revenue, as well as longer term retention.&nbsp;
<h2>Higher Engagement = Higher Deposits</h2>
Wherever that single view of their finances lives is where they will engage most often. MX data shows consumers who connect at least one or more external financial accounts are <a href="https://www.mx.com/guides/building-long-term-digital-engagement/">48% more likely to be digitally active a year later</a> than those who don&rsquo;t. At the same time, <a href="https://www.mx.com/research/consumer-research-digital-and-mobile-banking/">72% of consumers would likely seek out a different bank</a> or credit union if their current provider couldn&rsquo;t connect their financial accounts to preferred financial apps or other online accounts. By making it easy to connect external accounts within your banking experience, you can drive higher engagement. And, consumers who engage regularly and often with mobile and digital banking services are more loyal, have less turnover, and <a href="https://www.mx.com/case-studies/cure-for-lost-deposits/">maintain higher deposit balances</a> than less engaged consumers.&nbsp;
<img src="https://cms.mx.com/assets/c8771a6f-1b61-4760-bf9e-68e03f4e39af?width=529&amp;height=600" alt="Connecting Accounts" />
<h2>Better Personalization = Better Retention</h2>
Nearly half of consumers (47%) <a href="https://www.mx.com/research/driving-engagement-for-consumers-research/">expect greater levels of personalization</a> in banking than ever before. A recent Zendesk survey also found <a href="https://thefinancialbrand.com/news/bank-marketing/personalization/4-ways-personalization-is-evolving-at-top-banks-174569/">72% of consumers</a> said personalization is &ldquo;highly important&rdquo; to them and 77% of banking leaders said it leads to increased customer retention. But, if you only have some of that data, are your personalization efforts meeting the mark? Fifty-three percent of consumers expect financial institutions to <a href="https://www.mx.com/research/driving-engagement-for-consumers-research/">use the data they have about them to personalize</a> their experience. With a connected view of consumer financial data both inside your organization and from aggregated accounts, you can deliver a better experience that meets consumer demands for personalization while driving increased retention.&nbsp;
<img src="https://cms.mx.com/assets/72146f28-aecd-4d94-be49-040359b0a229?width=535&amp;height=600" alt="Personalization" />
<h2>Increased Intelligence = Improved Outcomes</h2>
At the end of the day, it&rsquo;s all about the data. Connectivity makes it possible for organizations to gain access to larger sets of <a href="https://www.mx.com/blog/what-is-consumer-permissioned-data/">consumer-permissioned financial data</a>, which fuels intelligence and innovation across nearly all areas of the business. It enables financial providers to gain a holistic view of spending behaviors, patterns, and preferences and better understand their customers so they can increase engagement, improve outcomes, and drive growth. In fact, <a href="https://www.forrester.com/press-newsroom/forrester-us-financial-services-customer-trust-index-2023/">Forrester Research</a> shared that financial institutions using data to tailor their services and communications see up to a 15% improvement in customer retention rates.&nbsp;
<img src="https://cms.mx.com/assets/72f98311-fbb1-41bb-8d42-0489220ab33e?width=513&amp;height=600" alt="Improved Outcomes" />
<h2>What is Open Finance?</h2>
While the ability to connect accounts has been around for decades, not all connectivity experiences are created equal. Historically, connecting an external account relied primarily on <a href="https://www.mx.com/blog/screen-scraping-vs-bank-apis-whats-the-difference/">screen scraping</a> or credential sharing, which requires consumers to share their login credentials to link their data. However, it&rsquo;s often a less reliable and less secure method to access financial data.&nbsp;
Enter <a href="https://www.mx.com/blog/what-is-open-banking/">Open Banking</a> and <a href="https://www.mx.com/blog/what-is-open-finance/">Open Finance</a>. Open finance application programming interfaces (APIs) allow consumers to access their transaction data without the need to share usernames and passwords, replacing credentials with tokens. This creates higher levels of security, faster speeds, and higher connection success rates. And, it lays the groundwork for a truly open data ecosystem &mdash;&nbsp;one where data becomes the fuel that powers new innovation, new insights, and new intelligence.&nbsp;&nbsp;
With reliable access to data, financial institutions, fintechs, and their consumers can better understand and do more with financial data. Companies that have embraced Open Finance and the use of APIs to enable data access are already seeing the benefits. It enables:
<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.&nbsp;</li>
<li style="font-weight: 400;" aria-level="1">More Accurate Customer Profiles: Financial providers can gain access to real-time permissioned 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, and make segmentation and targeting more accurate to ensure consumers get the right offers and messages to meet their needs.&nbsp;</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. Consumers have greater control over their financial data with the ability to connect and share their data on their terms. They can also more easily manage and revoke access to their data at any time.&nbsp;</li>
<li style="font-weight: 400;" aria-level="1">Personalized Services: By enabling consumers to easily connect external financial accounts, businesses can gain greater insights into their customers, better understand specific customer needs or preferences,&nbsp;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>
As financial institutions and fintechs look at ways to more effectively engage consumers and, ultimately, grow and retain deposits, it starts with reliable connectivity. Open Finance gives consumers and financial providers better access, visibility, and control into who has access to financial data.&nbsp;
With modern, open finance APIs, financial services providers can unlock even greater value from consumer-permissioned financial data. Previously, organizations could only tap into held data &mdash; the data they have within their core systems about customers &mdash; to understand and serve their consumers. With open banking, financial providers gain access to consumer-permissioned data from banking accounts, such as checking and savings accounts, outside of their organization. And, now with Open Finance, it&rsquo;s possible to gain a true 360-degree view of customers with access to consumer-permissioned data across all types of financial products and services, including wealth management, investments, credit cards, loans, and more.&nbsp;

Enabling consumers to easily connect all of their financial accounts helps drive engagement, deliver personalized experiences, and gain greater intelligence.


Why Connectivity Matters

A good mobile banking experiences is crucial to attracting and maintaining customers in financial services.

Consumers expect a good mobile banking experience and are willing to look elsewhere If they don't get it.

A Good Mobile Banking Is Top of Mind for Most Consumers

Everywhere you go, people are attached to their phones. Nose to the screen, blue light reflected in their eyes. So, it&rsquo;s no surprise that our latest research shows nearly half of consumers have 3 or more finance-related mobile apps on their phones today. And, they are using these apps a lot. In fact, 31% of U.S. consumers say they log into the mobile banking or finance app they use most often every single day. An additional 22% say they log in multiple times a day.&nbsp;
However, not all mobile banking experiences are equal and no one is more aware of this than consumers. In fact,&nbsp; the quality of a mobile banking experience can be the deciding factor in the financial provider(s) consumers choose.
In our latest survey, we asked <a href="https://www.mx.com/research/the-missing-link/">1,000+ U.S. consumers</a> how likely they are to use a financial provider with a poorly-rated mobile app or bad mobile experience. Thirty-five percent said not likely and 22% said very unlikely. That means over half (57%) of consumers will shy away from using a financial provider with a bad mobile experience.&nbsp;
At the same time,&nbsp; 65% of consumers said they would stop using a mobile app if the experience changed for the worse.
This research makes it&nbsp; clear how important a good mobile experience is to consumers. But what makes a mobile banking experience good? Our research shows that consumers want a relevant and personalized experience.
Check out our<a href="https://www.mx.com/research/the-missing-link/"> latest research report</a> to learn more about what consumers want in their mobile banking experience and other actionable intel.

Mobile Matters: Consumers Expect a Good Mobile Banking Experience 

Connect the Dots for Better Financial Outcomes

The Consumer Financial Protection Bureau&rsquo;s new rule under Section 1033 of the Dodd-Frank Act is here. And, the clock is now ticking. Now is the time for data providers to get ahead of compliance requirements and gain a competitive advantage ahead of compliance timelines.&nbsp;
We&rsquo;re here to help.&nbsp;
For more than a decade, MX has been a leader in open finance and consumer-permissioned data sharing. Our Data Access 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.
This guide gives you a simple view of key requirements for data providers, along with details on how Data Access can help you meet your 1033 compliance obligations and beyond.&nbsp;
<h2>What entities are considered a data provider under the final rule?&nbsp;</h2>
A data provider has obligations if it controls or possesses covered data concerning a covered consumer financial product or service that the consumer obtained from the data provider. This includes financial institutions as defined in Regulation E, card issues as defined in Regulation Z, and any other person that controls or possesses information concerning a covered product or service that the consumer obtained from that person. These requirements do not apply to data providers that hold total assets equal to or less than $850 million.
<h2>What are the key requirements for data providers and how can MX help meet these requirements?&nbsp;</h2>
<img src="https://cms.mx.com/assets/8ad91090-2f7e-4e58-ace2-78a433e1f52e?width=1480&amp;height=748" alt="Covered Data" />
<h3><img src="https://cms.mx.com/assets/a3aca510-7814-460c-8051-f2210b7edede?width=1484&amp;height=1158" alt="API and Third Party Management" /></h3>
<img src="https://cms.mx.com/assets/3c1b8461-775a-4f8d-9500-42573494ea0f?width=1480&amp;height=618" alt="Analytics and Reporting" />
<img src="https://cms.mx.com/assets/0e591140-4c55-45f8-834c-7aebafa54157?width=1480&amp;height=556" alt="Consent Management" />
*Note: The final 1033 rulemaking places the responsibility for managing consumer consent on third parties that request data on behalf of consumers. While data providers are not obligated to manage consumer consent or to provide consent revocation tools, data providers can choose to confirm consent and provide revocation tools, consistent with current industry best practices.

This guide gives you a simple view of key requirements for data providers, along with details on how Data Access can help you meet your 1033 compliance obligations and beyond. 

Understanding Key 1033 Requirements and How MX Helps | Data Providers

Policy experts and product leaders unpack the final CFPB Section 1033 rule and what it means for your organization

Watch: CFPB’s 1033 is Here | What It Means for You

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

Are You Ready for 1033?

Here are 5 risks and 5 rewards for financial services to consider related to artificial intelligence. The biggest challenge — and opportunity — is leveraging data to deliver true value. 

Risks and Rewards of AI in Banking | Research

View this infographic for a quick summary of top risks and rewards for AI in banking based on our research. 

Infographic: AI in Banking | Risks and Rewards

AI relies on the data used to feed it. If that data is inaccurate or confusing, financial providers are left with bad information.

What happens when the data flowing into and out of an AI model is dumb, deficient, or deceitful? Here’s our take on the top 5 risks to watch out for.

Understanding Top Risks for AI Use Cases in Financial Services

Financial services leaders are looking to AI to help them achieve new operational efficiencies, reduce costs, automate repetitive tasks, improve customer experiences, and drive new product and services innovations. And, many financial providers are already seeing results across use cases like fraud detection, customer service, and risk management.&nbsp;
However, financial services organizations face challenges when it comes to leveraging business data and consumer-permissioned financial data effectively &mdash; which gets even more challenging when AI enters the picture.
Artificial intelligence relies on the data used to feed its system. If that data is inaccurate, confusing, or outdated, financial providers are left making decisions, running operations, or serving customers based on bad information.&nbsp;
So what happens when the data flowing into and out of an AI model is dumb, deficient, or deceitful? Here&rsquo;s our take on the top 5 risks to watch out for:&nbsp;
<h2>1. Data Quality&nbsp;</h2>
How many companies are struggling with the premise of &ldquo;bad data in, bad decisions out?&rdquo; The vast majority (77%) of organizations have data quality issues, and 91% report this impacts their company&rsquo;s performance, according to a <a href="https://www.datanami.com/2022/06/17/data-quality-study-reveals-business-impacts-of-bad-data/">2022 survey of 500 data professionals from Great Expectations</a>. AI is only as good as the data that fuels it. Poor data quality, incomplete data sets, and disjointed information can be costly for businesses.
<h2>2. AI Hallucinations and Misinformation</h2>
Whether AI is intentionally misled by malicious actors or simply making stuff up to satisfy human prompts and questions, the risk of inaccurate information generated by AI is real. Primary <a href="https://www.cio.com/article/190888/5-famous-analytics-and-ai-disasters.html">examples of misinformation and AI hallucinations</a> (incorrect or misleading results that AI models generate) include everything from Air Canada chatbot lies to made-up court cases invented by ChatGPT for a U.S. District Court case.&nbsp;
<h2>3. Data-Generated Bias&nbsp;</h2>
AI can also be led astray by the same stereotypes and biases that humans struggle to combat. This can be due to the data used to train the AI model, the algorithms, or cognitive bias from the creators of an AI model. Gartner estimates that <a href="https://www.sitecore.com/blog/ai/ai-bias-what-it-is-and-why-it-matters">85% of AI projects provide false results due to bias</a> built into the data or the algorithms, or that exist in the professionals managing those deployments. For financial services, bias in AI use cases could impact credit and loan decisions, financial advice and investments, customer service, and more.&nbsp;
<h2>4. Data Privacy and Security</h2>
Privacy and security are already top concerns related to data &mdash;&nbsp;the use of AI shines an even bigger spotlight on the need for strong data privacy and security protocols and tools. The risks are two-fold:&nbsp;
<ul>
<li style="font-weight: 400;" aria-level="1">Protecting against AI-powered cyberattacks, threats, and fraud</li>
<li style="font-weight: 400;" aria-level="1">Educating on proper AI usage and establishing policies to protect against data breaches and leaks</li>
</ul>
<h2>5. Mistrust and Reputation Risk&nbsp;</h2>
At a high level, a recent <a href="https://www.salesforce.com/news/stories/trust-in-ai/">Harvard Business Review study</a> found most people (57%) don&rsquo;t trust AI. But, consumers are starting to trust AI to take the place of human interactions in certain cases. For example, <a href="https://360magazine.com/2024/05/27/pwc-voice-of-consumer-research/#:~:text=While%2080%20per%20cent%20of,to%20research%20published%20by%20PWC">PWC found</a> that half of consumers said they would trust GenAI to collate product information before they make a purchase (55%) or provide product recommendations (50%). However, there is still room to grow in gaining trust with AI for more complex topics &mdash; only 23% trust GenAI to assist them with legal advice, and just 27% trust it to execute financial transactions.&nbsp;
<blockquote>
Want to learn more? Check out the full report on the top risks and rewards for AI in banking: <a href="https://www.mx.com/guides/risks-rewards-ai/">https://www.mx.com/guides/risks-rewards-ai/</a>&nbsp;
</blockquote>

Top 5 Risks of AI in Banking

AI can power better money experiences, faster credit decisions, financial advice and investments, customer service, and more. 

As financial services companies embrace AI for a multitude of use cases, the key lies in the data. Here’s a closer look at 5 opportunities for AI in banking.

5 Key Opportunities for AI in Financial Services

Over the past decade, the world evolved from basic chatbots to a few niche users of ChatGPT to a widespread use of artificial intelligence across organizations. Primary examples of AI usage today range across nearly every industry.&nbsp;
The retail industry leverages AI to deliver personalized ads and shopping recommendations to customers based on browsing and purchase histories. In healthcare, AI is leveraged to help analyze medical images and detect conditions like cancer, heart disease, and more. In the automotive industry, AI is used to plot travel routes and now, even drive the car with advances in autonomous vehicles. The list of examples goes on &mdash; agriculture, manufacturing, entertainment, utilities, etc.&nbsp;
Within financial services, AI can power better money experiences, faster credit and loan decisions, financial advice and investments, customer service, and more. As financial services companies embrace AI for a multitude of use cases, the key lies in the data. Companies should focus on leveraging data in a way that maximizes integrated, inclusive, and intelligent use cases. Here&rsquo;s a closer look at 5 opportunities for AI in banking:&nbsp;
<h2>1. Intelligence Amplified</h2>
Artificial intelligence can augment and enhance data analysis processes and tools to enable smarter, faster insights based on large sets of data. It can also help uncover hidden patterns and previously unrealized opportunities that can drive significant value for organizations. <a href="https://www.mckinsey.com/~/media/mckinsey/industries/financial%20services/our%20insights/building%20the%20ai%20bank%20of%20the%20future/building-the-ai-bank-of-the-future.pdf">McKinsey &amp; Company</a> calls out that AI&rsquo;s potential to create value for financial services organizations is one of the largest across industries, potentially unlocking $1 trillion of incremental value for banks annually.
<h2>2. Operational Efficiencies</h2>
According to <a href="https://newsroom.ibm.com/2022-05-19-Global-Data-from-IBM-Shows-Steady-AI-Adoption-as-Organizations-Look-to-Address-Skills-Shortages,-Automate-Processes-and-Encourage-Sustainable-Operations">IBM</a>, 54% of organizations are seeing cost savings and efficiencies from using AI in IT, business, or network processes. These operational efficiencies can take the form of everything from automating repetitive tasks and reducing manual errors to filling labor and skills shortages and enabling chatbots to handle less complex customer service inquiries.&nbsp;
<h2>3. Financial Inclusion</h2>
While the risk of AI-generated bias in financial advice is real, AI can also break down barriers to financial access for unbanked and underbanked communities in a number of ways:&nbsp;
<ul>
<li style="font-weight: 400;" aria-level="1">Democratizing access to financial products and advice&nbsp;</li>
<li style="font-weight: 400;" aria-level="1">Empowering better money management with personalized insights and tools</li>
<li style="font-weight: 400;" aria-level="1">Expanding credit access to those with little or no credit history</li>
</ul>
<h2>4. Fraud Detection</h2>
A <a href="https://b2b.mastercard.com/news-and-insights/blog/industry-perspectives-on-ai-and-transaction-fraud-detection/">survey from Mastercard and Fintech Nexus</a> reveals that &ldquo;increased fraud detection&rdquo; ranks as the primary driver (63%) behind AI investment among financial institutions. AI can improve fraud detection and prevention by analyzing patterns and anomalies in transaction data more quickly and efficiently. In fact, a <a href="https://medium.com/@stahl950/ai-adoption-trends-for-smes-in-2024-55835eb0047e">study by IBM</a> found that AI-powered fraud detection systems will reduce false positives by up to 70%, resulting in significant cost savings and improved customer experiences.&nbsp;
<h2>5. Personalization at Scale</h2>
Eighty percent of consumers say customer experiences should be better considering all the data companies collect, according to <a href="https://www.salesforce.com/content/dam/web/en_us/www/documents/research/State-of-the-Connected-Customer.pdf">Salesforce&rsquo;s State of the Connected Customer</a> report. However, it&rsquo;s difficult to truly understand customers and deliver personalization at scale when most financial providers only see a small fraction of a consumer&rsquo;s financial life. AI can help financial providers deliver personalized experiences at scale by helping to automate and personalize support, as well as translate financial data points into actionable intelligence.&nbsp;
<blockquote>
Want to learn more? Check out the full report on the top risks and rewards for AI in banking: <a href="https://www.mx.com/guides/risks-rewards-ai/">https://www.mx.com/guides/risks-rewards-ai/</a>&nbsp;
</blockquote>

Understanding Opportunities for AI in Banking

Understanding AI Opportunities and Obstacles

<h2>Why the First 30 Days of a Banking Relationship Matter</h2>
Today&rsquo;s consumers have more choice than ever before when it comes to where they store and manage their money. And, it&rsquo;s not uncommon for the <a href="https://www.mx.com/research/what-consumers-want-from-financial-providers/">average consumer to have more than 5 accounts</a> with various financial providers as a result. In fact, our research of more than 1,000 U.S. adults found that <a href="https://www.mx.com/research/how-to-keep-consumers-from-breaking-up-with-banks/">nearly 1 in 4 consumers (23%) are opening new financial accounts at least once per year or more often</a>. Among Gen Z, this jumps to 36% of respondents who say they are opening new accounts at least once per year.
Consumers have little patience for financial providers who cannot meet their needs with fast, secure, and <a href="https://www.mx.com/products/experience/">personalized digital experiences</a>. While they may not always take steps to close an account that dissatisfies, you&rsquo;ll be able to tell which accounts simply exist but remain unused. So how do you make sure your financial institution or fintech is the one they turn to most often?&nbsp;
MX took a deep dive into the data from more than 10 million consumers over the past 12 months to identify how to drive the right experiences and touchpoints to create lasting engagement and relationships &mdash;&nbsp;and ultimately, <a href="https://www.mx.com/case-studies/cure-for-lost-deposits/">grow and maintain deposits</a>.&nbsp;
It all comes down to the first 30 days.&nbsp;
<blockquote>
&ldquo;By focusing on customer outcomes and creating personalized, intuitive experiences from Day 1 of the relationship, financial institutions can not only maintain deposits but grow them &mdash; even in an increasingly challenging market.&rdquo; &mdash;Clint Johnson, Director of Professional Services at MX.&nbsp;
</blockquote>
Here are 5 actionable steps that banks, credit unions, fintechs, and other financial providers can take during the first 30 days of a new consumer account to build a long-term relationship and create lasting engagement. 
<h3>1.&nbsp; Activate with Account Aggregation</h3>
With multiple disparate financial accounts across various banks, credit unions, and other providers, it&rsquo;s easy for consumers to lose sight of their full financial picture. As a result, 44% of U.S. adults say they have used digital tools to bring different financial accounts into one view. This account aggregation allows them to consolidate their finances into a single view rather than needing to login to multiple accounts to see what&rsquo;s going on with their finances.&nbsp;
And, wherever that single view lives is where they will engage most often. Our data shows consumers who connect at least one or more external financial accounts are <a href="https://www.mx.com/case-studies/cure-for-lost-deposits/">48% more likely to be digitally active a year later</a> than those who don&rsquo;t.
Financial providers should educate consumers early on how they can connect their external accounts and make it easy for them to do so. For instance, consider the flip side of our consumer research &mdash;&nbsp;56% of consumers have NOT used a tool to bring different accounts into one view. This is an opportunity to drive engagement by being the first financial institution to help them not only understand the value of <a href="https://www.mx.com/products/account-aggregation/">account aggregation</a> but also how to securely and seamlessly add their accounts.&nbsp;&nbsp;
<h3>2. Drive for Direct Deposit</h3>
Direct deposits create an immediate attachment for consumers to the bank where this direct deposit lives. That said &mdash;&nbsp;having a direct deposit with a particular institution doesn&rsquo;t guarantee that institution will be the consumer&rsquo;s primary go-to account. In fact, our data shows very few U.S. consumers (5%) defined a primary financial relationship as <a href="https://www.mx.com/research/how-to-keep-consumers-from-breaking-up-with-banks/">where they deposit most of their money</a>.&nbsp;
That said, establishing a direct deposit with a new financial account in the first 30 days can create higher engagement for the long-term. Our data shows consumers who do this are <a href="https://www.mx.com/case-studies/cure-for-lost-deposits/">76% more likely to be digitally engaged a year later</a> than those without direct deposit.&nbsp;
So, how do you get them to do this? The reality is most consumers likely don&rsquo;t want to go through the hassle of changing their direct deposit very often. To encourage taking action, financial providers should look at incentives that would make consumers want to switch &mdash; and they have to make the process easy and secure.&nbsp;
<h3>3. Encourage Frequent Logins</h3>
Consumers who log in at least once during their first month are 26% more likely to be digitally engaged after a year. Those who log in on at least four separate days during their first month are <a href="https://www.mx.com/case-studies/cure-for-lost-deposits/">550% more likely to still be active a year later</a>. The trick is to ensure your digital or mobile banking experience provides instant and repeated value for consumers. This means providing <a href="https://www.mx.com/products/financial-insights/">personalized financial insights</a> and easy-to-use <a href="https://www.mx.com/products/personal-financial-management/">personal financial management (PFM) tools</a> that help consumers meet their financial needs.
<a href="https://www.mx.com/whitepapers/financial-wellness-for-the-masses/">Consumers have less patience than ever for sub-par experiences</a> and overly complicated processes. Minimizing the steps &mdash; or searching &mdash; required to find information or take action is essential to driving high adoption and engagement. The longer it takes for customers to find what they need, the more likely they are to abandon the experience &mdash; and not come back. Institutions with the highest adoption rates place the most sought-after information and common actions in multiple prominent locations within the digital user experience.&nbsp;
<h3>4. Make Mobile Transfers Easy</h3>
Finally, consumers who make at least one mobile transfer during their first month are <a href="https://www.mx.com/case-studies/cure-for-lost-deposits/">195% more likely to be digitally engaged a year later</a> than those who don&rsquo;t. To encourage consumers to use your mobile transfer options, focus on delivering a safe, easy, and fast option for transfers.
<h3>5. Enable Embedded Personal Financial Management Tools</h3>
The more consumers know about their finances, the better they can manage them. Our research continually shows the majority of consumers agree they <a href="https://www.mx.com/research/what-influences-where-consumers-choose-to-bank/">want their financial provider to help them better manage their finances</a> (57%) and believe financial providers have a responsibility to teach them to be financially strong (54%).&nbsp;
And, our data shows those who deliver on these consumer expectations with PFM tools that meet their needs can drive higher engagement and success. In fact, consumers who interact with PFM tools at least one day during their first month are <a href="https://www.mx.com/case-studies/cure-for-lost-deposits/">176% more likely to be digitally engaged after one year</a> than those who don&rsquo;t.
<h2>Conclusion: Building Lasting Relationships from the Beginning</h2>
In today&rsquo;s financial landscape, consumers have countless options at their fingertips and aren&rsquo;t afraid to switch to a new provider if their needs aren&rsquo;t being met. Our data makes it clear that the first days of a new banking relationship can have lasting impacts on consumer engagement.&nbsp;
Banks and credit unions who are able to create a valuable onboarding experience that emphasizes connectivity, personalization, ease, and convenience will reap the benefits. But it&rsquo;s not enough to simply offer the tools. These five areas of opportunity need to be fully integrated into the customer onboarding process. How often does a consumer open a new bank account, get their login details, and simply have to figure it out on their own?&nbsp;
To be most effective, the account opening process needs to include education and training from the moment they receive their new account credentials to ensure they can get the most value from their experience. This should include training from in-branch employees to showcase key features to customers in person, and provide proactive emails, texts, and direct mail to remind them of features they can leverage to make managing their finances easier.&nbsp;
With a proactive approach to educating consumers on how to get the most out of their banking experience, coupled with personalized, easy-to-use tools that enable them to take these five actions within the first 30 days, financial providers can drive higher engagement from the beginning that results in increased customer loyalty, retention, and ultimately, deposits.&nbsp;
<blockquote>
&ldquo;To win and keep customers in 2024, the money experience needs to connect customers to their data in a way that enhances their financial lives. It needs to be personalized. It needs to be intelligent. And, it needs to be actionable.&rdquo; &mdash;<a href="https://www.mx.com/research/how-to-keep-consumers-from-breaking-up-with-banks/">How to Keep Consumers from Breaking Up with Banks</a>
</blockquote>

MX took a deep dive into data from more than 10 million consumers over the past 12 months to identify how to drive the right experiences and touchpoints to create lasting engagement and relationships.

Building Long-Term Digital Engagement in the First 30 Days

MX survey of 1,000+ U.S. consumers reveals on top factors when choosing a financial provider, why they close accounts, and more. 

What Financial Providers Need to Meet Customer Needs in 2024 | MX Research

Synergy Credit Union implements MX’s PFM and Insights into its digital banking solutions hosted by Celero to create a frictionless money experience.

How Synergy Credit Union Implemented MX PFM and Insights to Help Drive Engagement and Results for its Members

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Synergy Credit Union is a member-owned financial institution serving more than 28,000 voting and non-voting members from 12 communities within west-central Saskatchewan. Synergy Credit Union is the fifth largest credit union in the province of Saskatchewan and is one of the leading credit unions in Canada, with more than $2.4 billion in assets under administration. Synergy Credit Union provides core banking services through the traditional branch network, the Canada-wide AccuLink ATM network, online banking, mobile web banking, as well as through the Member Contact Centre.

The Challenge
Synergy Credit Union has been serving its communities since 1943 and is dedicated to making its members’ lives and communities prosperous. However, money remains the biggest source of stress among Canadians for the sixth year in a row according to FP Canada’s 2023 Financial Stress Index. Synergy CU recognizes it needs to make the money experience as frictionless as possible so it can serve members more effectively. At the same time, enabling its members to see a 360-degree view of their finances — including accounts with Synergy CU and other external accounts — was important to help members with their financial wellness goals.

"When it comes to personal financial management and budgeting, it's something that everyone needs, whether your income is high or medium or low. We all need that support. And so having guided online financial advice is vital,” said Trevor Beaton, Chief Innovation and People Officer at Synergy Credit Union."

The Solution
The credit union worked to implement MX’s financial management tools — Personal Financial Management (PFM) and Insights — into its digital banking solutions hosted by Celero, a leader in digital technology and integration solutions that partners closely with MX. Celero enables credit unions to integrate MX solutions into its digital banking platform to provide their members with personalized, secure financial guidance about spending, budgeting, debt management, and account aggregation online and through a mobile banking app.

When Synergy CU heard about MX, the credit union quickly found that the values of the two companies aligned very closely. “We raised our hand to be an early champion for this joint offering from MX and Celero because it aligns to our values and goals to help members achieve their financial goals,” said Trevor Beaton, Chief Innovation and People Officer at Synergy Credit Union. “Adding MX’s personal financial management capabilities to our Celero-hosted platform will be a great benefit to our members. If they’re able to save more, if they can pay down debt faster, if they have better insights into their finances — all these things help create stronger financial outcomes for our members and ultimately, lead to a stronger Synergy Credit Union.”

In particular, Synergy CU was excited to leverage MX account aggregation to enable its members to connect external accounts easily and seamlessly to gain a more complete picture of their finances. To date, Synergy CU members have aggregated external accounts including investments, credit cards, checking, and savings. Overall, 93.4% of aggregation requests are successfully connected in 15 seconds or less on average.

mx graph
Synergy CU is also leveraging MX Insights to make it easy for members to better understand what’s happening with their money and what they can do to improve their financial situation in real time. To make it easy for members to access and use these Insights, along with MX PFM tools, Synergy CU placed the tools front and center on the homepage. As a result, the credit union has found that those that view Insights are more engaged and login more frequently. Furthermore, Synergy CU has averaged more than 200,000 digital insights monthly to provide members with real-time digital advice that complements proactive adviser calls made to its members.

Synergy CU also observed an increase in its member voice survey results from 72% (Very Good) to 77% (Excellent). Specifically, digital results were rated much higher than in the prior year — the launch of the Money Management tools likely played a big part in this increase.

deposits appIn addition to the value that these insights provide to members, Synergy CU is able to gain actionable intelligence to better target and reach members with relevant offers and messaging. For instance, Synergy CU can not only see externally held accounts linked by its members but also analyze transaction data to identify externally held accounts and payments that are leaving the credit union. By better understanding funds leaving its institution, Synergy CU plans to use this information to create uniquely targeted messaging and marketing campaigns to grow its business and bring those accounts back to Synergy CU.
Adding MX’s personal financial management capabilities to our Celero-hosted platform will be a great benefit to our members.If they’re able to save more, if they can pay down debt faster, if they have better insights into their finances — all these things help create stronger financial outcomes for our members and ultimately, lead to a stronger Synergy Credit Union.

Trevor Beaton

Chief Innovation and People Officer at Synergy Credit Union

Your Guide to Driving Customer Engagement and Satisfaction

Innovation Forum: Are You Getting the Most From Your Data?

<h2 class="p2">Overview: Data Intelligence Is A Universal Requirement</h2>
Financial services are undergoing a transformation amid an increasingly competitive landscape, expectations of new regulations, and growing customer demands. Consumer financial data programs are vital to continued success, but all too often, organizations are limited by their inability to turn data into actionable intelligence. Without the strategy and infrastructure to effectively analyze and leverage financial data, organizations face business losses. Successful data programs require a holistic and agile internal structure and strong data partnerships to enable companies to best address business needs.
This study commissioned by MX Technologies explores the importance of effective use of consumer-permissioned financial data. Forrester surveyed 150 data strategy leaders in North American financial institutions to understand what their organizations&rsquo; data practices look like today, their challenges, and the benefits that effective data intelligence can drive.
<h2 class="p2">Situation</h2>
<h3 class="p2">Consumers&rsquo; Financial Lives Are Increasingly Fragmented </h3>
Today&rsquo;s consumer is more complex than ever. Nearly two-thirds of financial data leaders agree that consumers have more money in more places than ever and often lack a holistic view of their financial lives. Furthermore, 82% say that financial services organizations have access to more consumer financial data than in the past.
Additionally, 85% find that consumers now expect greater levels of personalization than ever before. They expect their financial institutions to use data to tailor their customer experiences. To further complicate matters, nearly 80% agree that consumers demand more control over their financial data today than ever before. And forthcoming regulations in the US and Canada will place new requirements on organizations that ensure consumers own and can control their financial data.
<img src="https://cms.mx.com/assets/80a48fe5-665e-4d8c-836c-53bfb73cf689?width=1305&amp;height=1710" alt="Consumer Financial Lives Are Increasingly Fragmented" />
<h3 class="p2">Effective Use Of Consumer Financial Data Is Crucial For Success</h3>
Changes in consumer behaviors and demands present both a significant opportunity and a significant challenge for financial providers to deliver against growing expectations. The vast majority of leaders agree that being able to use consumer financial data to provide clear and actionable insights and personalization to customers can be a significant competitive advantage. In addition, 79% consider financial data intelligence critical for their success.
The value of consumer financial data also extends way beyond personalization. This data is essential to enable financial providers to make better-informed and real-time strategic business decisions &mdash; 82% stress that this has become increasingly important.
<img src="https://cms.mx.com/assets/160f3af1-f50f-42c6-83b8-50e1ce949acd?width=2886&amp;height=1137" alt="Effective Use of Consumer Financial Data is Critical for Success" />
<h3 class="p2">Significant Value Remains On The Table </h3>
Today, many financial institutions are still at the beginning of their journey to maximize the power of consumer financial data for both customers and their business. When asked which use cases they were capable of today, no single use case had an adoption rate of more than 67%. However, financial leaders are ambitious in their desire to grow these use cases. In the future, more than three-quarters of leaders would like their organization to be capable of everything from providing personalized insights to making informed marketing decisions and managing data permissions.
The two areas where respondents expressed the greatest interest in growth are both related to the rising proliferation of consumer financial products &mdash; allowing consumers to aggregate their accounts and monitoring the third parties with which consumers share their data.
<img src="https://cms.mx.com/assets/9b4cb4c0-a52e-4343-9576-20f5ccd38139?width=1305&amp;height=1688" alt="Significant Value Remains on the Table" />
<h3 class="p3">How Companies Manage Data Varies</h3>
How are organizations today managing the way they aggregate, enhance, or analyze financial data? We found that there is a wide range of approaches, often influenced by company size. For most organizations, data analytics is exclusively or partially in-house. Data enrichment and aggregation are also often managed in-house but are commonly done through a vendor as well. Forrester&rsquo;s research indicates that larger organizations are more likely to do their enrichment, enhancement, and aggregation in-house, while smaller vendors are more likely to outsource to one or more data vendors.
<img src="https://cms.mx.com/assets/b48e65f8-db4e-4448-a58b-3e041a828332?width=2886&amp;height=1044" alt="How Companies Manage Data Varies" />
<h2 class="p2">Challenges</h2>
<h3 class="p2">Organizations Struggle To Extract Value From Consumer-Permissioned Financial Data</h3>
We found that most financial institutions struggle considerably to utilize financial data today. In part, this stems from an inability &mdash; or unwillingness &mdash; to evolve their data programs. More than 60% of respondents say their organization largely still uses data the same way they always have. This creates challenges with delivering personalized experiences at scale (60% say this is an issue), wasting data (52% say they have substantial amounts of data they are not using), and using their consumer data to make better products, services, and experiences (38% wrestle with this). Alarmingly, 39% say that the way they use consumer financial data has not been a top priority for their firm. However, as we will discuss later, this may be changing.
Failing to leverage data has considerable consequences: 44% say they have lost customers due to poor data usage and 45% have lost customers due to poor personalization.
<img src="https://cms.mx.com/assets/9408dae7-28b3-433c-b3df-eca6463d9a81?width=1305&amp;height=1710" alt="Organizations Struggle to Extract Value from Data" />
<h3 class="p2">Internal And External Issues Inhibit Actionable Data Intelligence</h3>
We asked financial data leaders what contributed to their issues and found two main root causes: 1) a lack of internal consistency, ownership, and expertise and 2) difficulty finding the right data partner.
Looking at internal challenges, leaders paint a picture of siloed, inconsistent approaches to how they use data and no clear ownership of a cohesive data strategy. This can lead to teams having little to no visibility into the data they need.
Organizations also struggle with finding the right partner &mdash; or with having too many partners &mdash; which further complicates internal challenges related to consistency and ownership.
<blockquote>
56% say different teams across their organization have drastically different ways in which they access and utilize consumer financial data
</blockquote>
<img src="https://cms.mx.com/assets/81b537af-2070-4b51-a997-669794244c2f?width=1305&amp;height=1710" alt="Where Orgs Fall Short with Data Capabilities" />
<h3 class="p2">Fundamental Strategy Is Not The Problem, But Organizations Need Change</h3>
Our research consistently found that, for most organizations (though certainly not all), the biggest issue is less about whether data leaders know the right plan of action and more about whether they have the internal structures and trusted partners needed to enact those plans. Notably missing from the top underlying issues with financial data programs today are issues with strategy &mdash; this was toward the bottom of the list of respondents&rsquo; concerns.
Competing priorities and previous failures or struggles often leave top decision-makers hesitant to allocate the resources needed to make significant improvements. However, this is beginning to change: Nearly 80% of leaders said they know their organization should put a greater priority on maximizing the potential of consumer financial data.
<img src="https://cms.mx.com/assets/7db2574e-aa08-465e-ac57-8c44dc21dff0?width=1305&amp;height=1710" alt="Put Greater Priority on Consumer Data" />
<h2 class="p3">Opportunity</h2>
<h3 class="p3">Investing In The Right Partner, Processes, And Technology Is Key</h3>
If organizations seek to change, what will that look like? We asked leaders this question and found that, once again, change does not mean a ground-up rebuild of data programs for the majority of organizations. Only 37% have plans to rethink their entire data strategy, and only 13% say they don&rsquo;t know where to start with leveraging financial data. Instead, change is about breaking down silos, investing in technologies and improved automation, and finding the right data partner to help navigate the murky waters of consumer financial data. Leaders know they can&rsquo;t go this alone &mdash; the vast majority (86%) say that having the right data partner is critical for them to succeed in their data programs.
<img src="https://cms.mx.com/assets/b0c25dbc-af76-41be-b1c6-d230985a4c1b?width=2883&amp;height=1152" alt="Planned Steps Going Forward" />
<h3 class="p2">With The Right Financial Data Strategy, The Potential For Improvement Is Enormous</h3>
Leaders understand that a significant improvement to their organizations&rsquo; ability to utilize consumer financial data for business purposes can lead to transformational advances. The majority of leaders expect to see improved customer experiences, retention, audience targeting, efficiency, business decision‑making capabilities, and more as they enhance how they leverage consumer financial data.
<img src="https://cms.mx.com/assets/e15a7bd6-455e-4ede-9d15-acda6b8bd720?width=1305&amp;height=1710" alt="Expected Benefits of Significant Improvement in Ability to Utilize Data" />
<h2 class="p2">Conclusion</h2>
Intelligence submerged in data lakes is useless. The value of data is not disputed, but most firms struggle to effectively maximize the use of consumer financial data across their businesses, leaving customer and business benefits unrealized. What&rsquo;s worse: They know this is the case.
To drive better outcomes for your customers, you must know them and use those insights to drive value &mdash; including more targeted marketing, better service, product enhancements, or greater security.
Having the right tools and data in place is one thing. Unless people know what data is available, where to derive intelligence, and how to put it into action, you will perpetuate untapped potential.
To accelerate change, you need a partner that can help you build the right data pathways for your company. Ensure that partners understand not only your data but also your organization. Choose a provider that can fulfill your current needs &mdash; and support your future ambition.
<h4 class="p2">Methodology </h4>
This Opportunity Snapshot was commissioned by MX Technologies. To create this profile, Forrester Consulting supplemented this research with custom survey questions asked of consumer financial data decision-makers at North American financial institutions. The custom survey began and was completed in January 2024.
<h4 class="p4">ABOUT FORRESTER CONSULTING </h4>
Forrester provides independent and objective research-based consulting to help leaders deliver key outcomes. Fueled by our customer-obsessed research, Forrester&rsquo;s seasoned consultants partner with leaders to execute their specific priorities using a unique engagement model that ensures lasting impact. For more information, visit forrester.com/consulting.
&copy; Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change. Forrester&reg;, Technographics&reg;, Forrester Wave, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. [E-59738]

This Forrester Consulting study, commissioned by MX, surveyed 150 data strategy leaders to understand what data practices look like today, challenges, and benefits of effective data intelligence.

Opportunity And Growth In Financial Services | Forrester Consulting Study

MX recently commissioned a survey of 150 financial services industry leaders and decision makers in the U.S. and Canada from <a href="https://www.forrester.com/bold">Forrester Consulting</a>. The study sheds light on how financial providers think about and use consumer-permissioned financial data to gain actionable intelligence and drive outcomes.&nbsp;
<blockquote>
&ldquo;Consumer financial data programs are vital to continued success, but all too often, organizations are limited by their inability to turn data into actionable intelligence.&rdquo; &mdash;<a href="https://www.mx.com/research/opportunity-growth-financial-services/" target="_blank" rel="noopener">Opportunity And Growth In Financial Services: Turning Data Insights into Actionable Intelligence</a>
</blockquote>
The main takeaway? Financial services leaders all agree on the value of data, but the majority of organizations struggle to effectively leverage that data to drive value for both consumers and their businesses. You can <a href="https://www.mx.com/research/opportunity-growth-financial-services/" target="_blank" rel="noopener">read Forrester&rsquo;s study here</a>. Here are our top takeaways for institutions looking to drive more value and <a href="https://www.mx.com/blog/what-is-financial-data-intelligence/">actionable intelligence</a> from consumer financial data.&nbsp;
<h2>Facing Increasingly Fragmented Financial Lives</h2>
Consumers today have money in more places than ever before, and as a result, often don&rsquo;t have a holistic view of their financial lives. This makes it exponentially harder for consumers to effectively monitor and manage their finances. And, it makes it nearly impossible for organizations to truly understand consumer needs. In fact, 41% of data strategy leaders agree it has become increasingly difficult to create a holistic view of their organization&rsquo;s consumers&rsquo; financial lives and understand their needs.&nbsp;
While there is more data available about consumer finances &mdash; 82% of data leaders agree financial services organizations have access to more consumer financial data than ever before, this fragmentation creates what we call &ldquo;financial blindness.&rdquo; Consumers struggle to gain a complete picture of their finances, often missing things, and businesses only see a fraction of their customer&rsquo;s finances.&nbsp;
Coupled with macroeconomic trends and tightening budgets, financial services organizations face the challenge of turning this growing mountain of consumer-permissioned financial data into actionable intelligence. For instance, 52% of respondents agree their organization has substantial amounts of consumer financial data today that they are not using.
<h2>Deriving Financial Data Intelligence</h2>
Seventy-nine percent of North American data leaders agree <a href="https://www.mx.com/blog/what-is-financial-data-intelligence/">financial data intelligence</a> is critical to their organization&rsquo;s success in the future. The majority (80%) also agree being able to utilize consumer financial data effectively would be a significant competitive advantage for them.&nbsp;
When asked about benefits they&rsquo;d expect to see from a significant improvement to their ability to utilize consumer financial data for business purposes, the majority expect value across the board from an improved customer experience to better decision making to increased efficiency:&nbsp;
<img src="https://cms.mx.com/assets/25e82d11-0f72-4d96-a8cb-4c825d8c963b?width=1042&amp;height=708" alt="Expected Benefits of Improved Data Utilization" />
However, according to Forrester&rsquo;s research, many financial institutions are still at the beginning of their journey to maximize the power of consumer financial data. The study states, &ldquo;...most financial institutions struggle considerably to utilize financial data today. In part, this stems from an inability &mdash; or unwillingness &mdash; to evolve their data programs. More than 60% of respondents say their organization largely still uses data the same way they always have. This creates challenges with delivering personalized experiences at scale (60% say this is an issue), wasting data (52% say they have substantial amounts of data they are not using), and using their consumer data to make better products, services, and experiences (38% wrestle with this). Alarmingly, 39% say that the way they use consumer financial data has not been a top priority for their firm.&rdquo;
The good news is that the majority of organizations recognize they need to change. Seventy-nine percent of respondents agree they think their organization should put a greater priority on maximizing the potential of consumer financial data.&nbsp;
So, where should organizations focus their energy? When asked to what extent do they feel their organization is falling short of where it needs to be, the top 4 areas where respondents believe they are falling somewhat or significantly short include:&nbsp;
<ul>
<li style="font-weight: 400;" aria-level="1"><a href="https://www.mx.com/products/account-aggregation/">Account Aggregation</a>: 27% said they fall short in their ability to allow consumers to aggregate external financial accounts into their organizations app/site to create a comprehensive view of their finances</li>
<li style="font-weight: 400;" aria-level="1">Data Aggregation: 27% said they fall short in their ability to compile data into a single aggregated and enhanced source</li>
<li style="font-weight: 400;" aria-level="1">Marketing Programs and <a href="https://www.mx.com/use-cases/customer-intelligence/">Customer Intelligence</a>: 27% said they fall short in their ability to use real-time data to make informed marketing decisions</li>
<li style="font-weight: 400;" aria-level="1">Personalization: 26% said they fall short in their ability to leverage data to deliver personalized offers, messages, and services to consumers</li>
</ul>
<h2>Meeting the Demand for Personalization</h2>
<blockquote>
To drive better outcomes for your customers, you must know them and use those insights to drive value &mdash; including more targeted marketing, better service, product enhancements, or greater security. &mdash;<a href="https://www.mx.com/research/opportunity-growth-financial-services/" target="_blank" rel="noopener">Opportunity And Growth In Financial Services: Turning Data Insights into Actionable Intelligence</a>
</blockquote>
According to MX&rsquo;s latest <a href="https://www.mx.com/research/how-to-keep-consumers-from-breaking-up-with-banks/">survey of 1,000+ U.S. consumers</a>, more than half of U.S. consumers (54%) want financial providers to leverage their financial data to personalize their experience. To add to this, 48% of consumers also say they would give their financial provider access to more of their data if they knew it would result in a better experience. Forrester&rsquo;s survey found that 85% of decision makers agree consumers today expect greater levels of personalization in banking than ever before.&nbsp;
But delivering on this expectation is still difficult. Sixty percent of data leaders say their organization is concerned about how to deliver personalized experiences at scale to customers. And, nearly 1 in 4 (23%) say they don&rsquo;t currently leverage data about their consumers&rsquo; financial lives to personalize products and services.&nbsp;
As it becomes easier for consumers to open new accounts or switch financial providers if they aren&rsquo;t satisfied, delivering a personalized <a href="https://www.mx.com/money-experience/">money experience</a> is more critical than ever. Forrester found that the vast majority (81%) agree being able to personalize experiences based on consumer financial data is a must-have for the future. Amidst fierce competition for share of wallet and mind, financial providers can&rsquo;t afford to ignore what they know about their consumers.&nbsp;
Jim Marous, co-publisher of The Financial Brand, says &ldquo;banks adept at deriving actionable intelligence from customer insights and nimble enough to act quickly can foster much deeper consumer relationships through advanced engagement. The key to seizing these CX [customer experience] possibilities lies in <a href="https://thefinancialbrand.com/news/customer-experience-banking/improving-bank-cx-demands-data-driven-real-time-engagement-170221/">fully utilizing data, analytics and technology</a> to revolutionize how engagement is supported.&rdquo;
<h2>Unlocking Financial Data Intelligence with MX</h2>
At MX, we believe being able to effectively connect to, understand, and act on consumer financial data is the key. Financial services organizations who are able to do this will reap the benefits of financial data intelligence. And, those who don&rsquo;t may face considerable consequences &mdash; Forrester&rsquo;s research found that 44% say they have lost customers due to poor data usage and 45% have lost customers due to poor personalization.
The combined power of MX&rsquo;s suite of connectivity, data, and experience products drives better outcomes for both businesses and consumers by enabling financial institutions and fintechs to:&nbsp;
<ul>
<li style="font-weight: 400;" aria-level="1">Empower consumers to easily <a href="https://www.mx.com/products/account-aggregation/">connect and view all of their financial accounts</a> in one place &mdash; and gain better visibility into consumer-permissioned financial data.</li>
<li style="font-weight: 400;" aria-level="1">Deliver <a href="https://www.mx.com/products/financial-insights/">personalized insights and recommendations</a> to help consumers better manage their spending, create budgets, increase savings, and pay down debt.</li>
<li style="font-weight: 400;" aria-level="1">Protect, guide, and inform consumers with AI-driven, predictive insights and <a href="https://www.mx.com/use-cases/financial-wellness/">financial wellness tools</a> that make it easy for them to take action to reach their financial goals.</li>
<li style="font-weight: 400;" aria-level="1">Leverage <a href="https://www.mx.com/products/data-enhancement/">enhanced transaction data</a> and <a href="https://www.mx.com/products/customer-analytics/">actionable consumer insights</a> to help financial providers increase engagement, grow deposits, identify cross-sell opportunities, achieve a higher ROI on marketing spend and campaigns, and predict and prevent customer churn.</li>
</ul>
<img style="width: 470px; margin-top: 30px;" src="https://cms.mx.com/assets/c41451a8-04e2-426e-9c12-69fa88b01964?width=481&amp;height=883" alt="Why MX" />

Here are top takeaways for institutions looking to drive more value and actionable intelligence from consumer financial data. 


Key Takeaways for Forrester Opportunity Snapshot | The Value of Data

Despite having more consumer financial data than ever before, many financial providers struggle to get the most value from it.

Want to learn more about how consumer financial data unlocks growth opportunities?

A recent Forrester Consulting study, commissioned by MX, explores how financial institutions use consumer-permissioned financial data.

The Unrealized Value of Consumer Financial Data | MX Blog

Despite having access to more consumer financial data than ever before, many financial providers struggle to extract value from it &mdash; missing opportunities to improve outcomes for both their customers and business.
The value of data is not disputed, but most firms struggle to effectively maximize the use of consumer financial data across their businesses, leaving customer and business benefits unrealized. What&rsquo;s worse: They know this is the case.
A recent Forrester Consulting study, commissioned by MX, surveyed 150 data strategy leaders in North American financial institutions about the importance of the effective use of consumer-permissioned financial data. Here&rsquo;s a quick summary:
Want to learn more? Read the <a href="https://www.mx.com/research/opportunity-growth-financial-services/" target="_blank" rel="noopener">full study here</a>.
<h2>The Good: The Benefits of Financial Data Intelligence are Vast</h2>
Financial institutions recognize the value of financial data intelligence and the majority (79%) believe it is critical to their organization&rsquo;s success in the future. Leaders also understand that a significant improvement in the ability to utilize consumer financial data could be transformational. Expected benefits include:&nbsp;
<img src="https://cms.mx.com/assets/53fc54ba-a98c-4ac7-be20-6cd2fcbd0fd3?width=435&amp;height=523" alt="Screenshot 2024 03 27 at 2.50.32 pm" />
<h2>The Bad: Most Financial Providers Still Largely Use Data the Same Way&nbsp;</h2>
Many financial services providers are just starting the journey to maximize the power of consumer financial data for both customer and business benefits. Sixty-two percent of data strategy respondents say their organization still largely uses data the same way they always have. And, when asked which use cases &mdash;&nbsp;like providing personalized insights, monitoring and managing where consumers share financial data, and making informed decisions &mdash;&nbsp;they were capable of today, no single use case had an adoption rate higher than 67%.&nbsp;
<h2>The Opportunity: Investing in the Right Partner, Processes, and Technology</h2>
To unlock the full value of consumer-permissioned financial data, financial providers should be prepared to break down silos, invest in technologies and improved automation, and search for the right data partner.&nbsp;
And, it doesn&rsquo;t mean rebuilding their data programs from the ground up. Here are the steps data strategy leaders are taking:
<img src="https://cms.mx.com/assets/22259b32-2b52-468a-971f-3054ad4be620?width=435&amp;height=523" alt="Screenshot 2024 03 27 at 2.49.50 pm" />
According to Nandita Gupta, MX&rsquo;s Chief Product Officer, &ldquo;intelligence locked away is intelligence wasted. Too many institutions are trapped in this paradox of owning raw information, but not getting any value from it.&rdquo;&nbsp;
Financial institutions recognize this challenge and have significant opportunities to do more with consumer-permissioned financial data. Are you making the most of your financial data?&nbsp;

Consumer-permissioned financial data can fuel growth and improve outcomes for financial services providers. A recent Forrester Consulting study, commissioned by MX, explores how data is currently used and what opportunities can be unlocked.

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