In a significant advancement towards enhancing consumer control over financial data, Mastercard has unveiled its latest innovation, Connect Plus. This new tool serves as a “data command center,” allowing consumers to manage how, where, and with whom their financial information is shared. Announced on October 18, 2024, Connect Plus aims to foster transparency and trust within the digital economy by giving individuals and small businesses greater agency over their financial data.
Empowering Consumers with Data Control
Connect Plus is designed to provide users with comprehensive control over their financial data, addressing growing concerns about data privacy and security in the financial sector. The tool offers a range of features that enable consumers to manage their financial information seamlessly and securely.
Key Features of Connect Plus:
- Account Linking and Management: Users can search for and link their bank accounts effortlessly, consolidating their financial data in one place.
- Third-Party Access Oversight: Consumers can view which third parties have permission to access their account data, ensuring they are aware of all external entities handling their information.
- Real-Time Consent Management: Granting and revoking consent to third parties is made simple, allowing users to adjust permissions as needed without delay.
- Expiration Notifications: The tool notifies users when a third-party’s permission to access their data is nearing expiration or requires renewal, ensuring continuous control over data sharing.
Statements from Mastercard Leadership
Jess Turner, Global Head of Open Banking and API at Mastercard, emphasized the importance of transparency in building trust within the digital economy. “Transparency is the key ingredient to instilling trust in the digital economy,” Turner stated. “When individuals and small businesses have agency over their financial data — who has it, where it’s going and how it’s being used — they can make informed decisions, access better opportunities, and have more confidence that their financial data is just that — theirs.”
Survey Insights Highlighting Consumer Priorities
A recent survey conducted by Mastercard underscores the critical importance consumers place on data control:
- 76% of Mastercard consumers connect their financial accounts.
- 93% of respondents indicated that having control over how their financial data is used is of “paramount importance.”
These statistics highlight a strong consumer demand for tools like Connect Plus that prioritize data privacy and user empowerment.
Pilot Program and Future Expansion
Mastercard is currently piloting Connect Plus, with plans to roll out the tool to all users in the United States by next year. The phased approach allows Mastercard to refine the tool based on user feedback and ensure it meets the diverse needs of its consumer base.
Addressing Trust Issues in Open Banking
The launch of Connect Plus comes at a time when open banking is gaining global momentum as a means to enhance financial services. However, trust and security remain significant barriers to its widespread adoption:
- Global Skepticism: In the United Kingdom, 84% of consumers mistrust the safety of open banking, and 72% believe it benefits third-party providers more than consumers.
- US Concerns: While 60% of Americans view open banking favorably, concerns about data storage and collection practices persist. Only 57% of Americans trust financial institutions to protect their personal information.
According to the PYMNTS Intelligence report, “Can Open Banking Win Trust to Drive Real-Time Payments?”, data security and privacy are critical obstacles that need to be addressed to realize the full potential of open banking in the American financial landscape.
Conclusion: Building a Trustworthy Digital Economy
Mastercard’s introduction of Connect Plus marks a pivotal step towards empowering consumers with greater control over their financial data. By addressing transparency and data privacy concerns, Mastercard aims to build a more trustworthy and inclusive digital economy. As open banking continues to evolve, tools like Connect Plus will play a crucial role in bridging the gap between technological advancements and consumer trust.
