Mastercard Updates Its Open Banking Platform to Simplify Opening and Updating Accounts

Card giant Mastercard recently announced that it is updating its Open Banking platform. The idea is to make it possible for customers to automatically switch their direct deposits, as well as update their recurring bill payments during account opening or updating.

Improving The Online Banking Experience

Online banking has been taking over across the world, but when it comes to mobile account opening, there are still some features that could improve the process. Among them, the most requested one by American users was automated deposit switching.

However, according to Mastercard, the process still involves large amounts of manual paperwork, not to mention lengthy wait times, as it takes a long time for HR processes to clear such requests.

However, the firm might have a solution to this issue embedded directly in the financial institution’s app or website. Mastercard now offers a Deposit Switch that allows customers to completely skip the manual paperwork. Instead, their payroll deposit gets automatically routed to the customer’s existing or brand-new bank account.

The New Technology Comes From Atomic

The new feature uses the technology provided by Atomic, one of the members of the Mastercard Start Path. The company’s tech allows users to connect to their payroll provider without the need to share credentials with any kind of third party.

In addition, the firm also features the Bil Pay Switch feature, which enables users to add or update their payment credentials when they show at the merchants and billers that they use on a regular basis. This could include utilities, subscriptions, insurance, telecoms, and similar entities.

Atomic offers technology that can authenticate directly with each of these service providers and update the payment credentials on file. Best of all, the data never leaves the bank app/website, so there is little risk of exposure of it falling into the wrong hands.

Simplifying and Modernizing Tedious Processes

Commenting on the matter, Mastercard’s EVP for North America, Silvana Hernandez, stated that digital consumers are looking for maximum value from their bank accounts. This includes simplified as well as modernized processes involving tedious tasks, and rerouting direct deposits or paying bills is the prime example of such tasks.

Younger generations also played a major role in designing this system, as Hernandez explained. She said: “We also know that Gen Z, in particular, is leaning into debit as a preferred payment for everyday expenses, so providing a secure, seamless online banking experience through open banking connectivity will ultimately help drive account primacy for financial institutions.”