40 million Americans are unnecessarily locked out of open banking

Current open banking systems are leaving millions of potential customers behind. Most data-sharing tools require a username and password to connect a bank account. However, roughly 40 million Americans do not use online banking portals. This creates a massive hurdle for retailers and service providers who rely on instant financing approvals. If your customer can't log in to verify their income or identity, they often get declined for credit on the spot. The industry is moving toward 'bank-agnostic' verification tools. These use alternative methods like secure tokenization and direct bank API connections that don't require a traditional login. For a merchant, this means fewer abandoned carts and higher approval rates. You should be looking for financing partners that offer multiple ways to verify accounts beyond just a standard login screen. If your current lender only supports password-based verification, you are likely losing sales from older demographics or underbanked consumers who have the funds but lack the digital credentials. Embracing inclusive open banking technology will expand your reachable market and streamline the checkout experience for everyone.

Source: American Banker — Top News

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