Axway: 48% of Americans have never heard of “open banking”

48% of Americans have never heard of the term “open banking,” and only about half of them actually know what open banking is, according to a new report from Axway.

While many players in the financial services world know what open banking is and what services it can provide, many others have yet to make the connection between what a truly open financial ecosystem represents.

Basically, open banking is about letting people control their money. The survey shows that this is a principle people overwhelmingly support: 84% of Americans agree that they should be in control of their financial data and that banks should not prevent the movement of money between other financial services.

“Axway’s research paints a fascinating picture. Although insiders have been considering Open Banking for years, most Americans still have no idea what the term means. But most agree with its general principles when explained – indicating both a solid opportunity and a need for education, ”said Glen Sarvady, managing director of 154 Advisors and co-host of the fintech podcast BIGCast.

People still trust and need their banks as 81% said they believe their banks provide all the financial services they need in their daily life. Yet 40% of the same people use at least one finance or budgeting app other than their bank’s mobile app, because they’re drawn to new FinTechs offering innovative tools that they really want to use.

Key takeaways from Axway, a global API management company that has analyzed new data of 1,000 American consumers regarding their most recent banking experiences, confirm that there is an interesting contradiction in our knowledge of open banking and financial services.

Read it full report by Axway.