Payments giant Mastercard has integrated Deposit Switch and Bill Pay Switch into its open banking platform, in a move that enables consumers to automatically switch their direct deposits and update their recurring bill payments, when opening a digital account or when updating information on an existing account.
The new Mastercard open banking solutions are delivered in partnership with Atomic, a payroll and merchant connectivity solution provider, as well as a member of Mastercard’s Start Path programme. Following the launch, customers will gain access to a suite of account opening and funding solutions enabled by open banking, payroll and merchant data connections.
Automated deposit switching is the number one feature demanded by consumers, according to a recent study. However, existing processes still require manual paperwork and long wait times for HR processes to clear.
But now, financial institutions are looking to change this, in an effort to grow deposits. As much as 80 per cent of banking executives see opportunities to grow deposits as a crucial part of the account onboarding experience.
“Digital consumers are looking for maximum value from their bank account, which includes simplified and modernised processes for tedious tasks like rerouting direct deposits and paying bills,” explained Silvana Hernandez, executive vice president for Mastercard in North America.
“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.”
Mastercard anticipates that the Deposit Switch and Bill Pay Switch solutions will be available later this year.
Tackling issues with deposits
Recognising a need for change, the new Mastercard ‘Deposit Switch’ enables consumers to skip manual paperwork and automatically route their payroll deposits to a new or existing bank account. It also enables consumers to update or redirect their deposit allocations in real-time, by connecting to top payroll systems in the US.
The Deposit Switch solution leverages Atomic’s TrueAuth technology, which enables consumers to link to their payroll provider without having to share credentials with third parties.
Ultimately, the solution aims to help financial institutions simultaneously grow deposits, create primary relationships with their customers and reduce customer acquisition costs.
Empowering customers with enhanced digital experiences
Meanwhile, Mastercard’s new Bill Pay Switch enables consumers to add or update their payment credentials at the merchants and billers they use regularly, such as subscription providers, utilities, telecom and insurance.
This solution also uses TrueAuth technology from Atomic, to authenticate directly with each provider and update the payment credential on file. Financial institutions can now offer this solution as part of their digital banking experience.
Jordan Wright, co-founder and CEO of Atomic, also said: “By collaborating with Mastercard we’re not just alleviating common pain points, but also empowering consumers to manage their finances more effectively. This partnership allows us to leverage our advanced payroll and merchant connectivity to enhance user experiences.
“Our goal is clear: to help people manage their money better by providing smarter, more connected financial solutions. These tools are a testament to our commitment to innovation and the betterment of the financial journey for all consumers.”
Mastercard explained the solution should help financial institutions improve customer engagement and top-of-wallet spending.
