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Mastercard Revolutionizes Fraud Detection with Generative AI.New Mastercard Open Banking solutions, delivered with Atomic, streamline and secure opening and updating digital accounts

Today, Mastercard announced the integration of Deposit Switch and Bill Pay Switch with Mastercard’s Open Banking platform, enabling consumers to automatically switch their direct deposits and update their recurring bill payments, both when opening a digital account or when updating information on an existing account. The solutions will be delivered in partnership with Atomic, a leader in payroll and merchant connectivity solutions and a member of Mastercard’s Start Path program. Through a single integration to Mastercard Open Banking, customers will have access to an entire suite of account opening and funding solutions enabled by open banking, payroll and merchant data connections.

The state of online banking

A study on mobile account opening showed that automated deposit switching was the number one feature demanded by consumers. Yet the process still involves manual paperwork and long wait times for HR processes to clear. In parallel, financial institutions are placing increasing importance on growing deposits and obtaining primacy with their customers – other research showed that nearly 80 percent 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 modernized processes for tedious tasks like rerouting direct deposits and paying bills,” said Silvana Hernandez, Executive Vice President, Mastercard, 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.”

Taking the pain out of switching direct deposits

Embedded directly within a financial institution’s app or website, Mastercard’s Deposit Switch lets consumers skip manual paperwork and automatically route their payroll deposits to a new or existing bank account. Deposit Switch safely connects to the top payroll systems in the U.S., allowing consumers to update or redirect their deposit allocations in real-time. The solution includes Atomic’s  TrueAuth technology, which allows consumers to link to their payroll provider without having to share credentials with third parties, and can be further enhanced with Mastercard’s identity and fraud prevention services. Financial institutions can simultaneously grow deposits, create primary relationships with their customers and reduce customer acquisition costs.

Simplifying recurring bill payments

Mastercard’s 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. The solution uses TrueAuth technology to authenticate directly with each provider and update the payment credential on file, all without the hassle of leaving the mobile application or online banking environment they are using. Financial institutions can offer Bill Pay Switch as part of their digital banking experience, in turn improving customer engagement and top-of-wallet spend.

“At Atomic, we’re dedicated to refining the banking experience, ensuring that it’s as seamless and intuitive as possible,” said Jordan Wright, Co-Founder and CEO, Atomic. “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’s global open banking platform and high-quality data connectivity empower consumers and businesses to securely access and share data, driving innovation and financial inclusion on a global scale. Paired with Mastercard’s Open Banking for Account Opening program, Deposit Switch and Bill Pay Switch modernize and secure the digital account journey. Availability of Deposit Switch and Bill Pay Switch are anticipated for 2024.