Open banking makes it possible to easily share your bank details with third parties. The technology has been around for a few years and is increasingly used by lenders, factoring and leasing companies in particular. What about usage? Are people willing to simply share their bank details? In this article we zoom in on the conversion rates in open banking.
What do we mean by conversion rate?
By this we mean the total number of customers who start the process of sharing bank data, compared to the number of customers who actually complete the process and successfully share data. In concrete terms: if 100 customers start the application and 80 complete it, the conversion is 80%.
Varies per application
First of all: the context in which Open Banking is used has a major influence on the conversion rate. For example, some of our customers require the sharing of transaction data to qualify for credit, while others offer it as an option. You will logically see a difference in conversion. The type of service also makes a difference. For example, we usually see high conversion rates with:
1.Lenders
2. Factoring companies
3. (Financial) lease
4. Budget apps (to map personal or business finances)
5. Accounting software
Conversion rates
Taking into account the different applications, we see the following conversion rates:
1. Mandatory data sharing
For companies that require the sharing of bank details, for example when applying for a loan or financial lease, we see conversion rates between 65% and 70%.
2. Optional data sharing
Companies that make sharing banking information optional typically achieve a slightly lower conversion rate, between 60% and 65%.
3. Data sharing with alternatives
Some of our customers offer multiple routes, for example digital sharing via open banking, but also the alternative of sharing MT940 files or bank statements. In these situations, conversion rates are between 30% and 50%.
Increase conversion rates
We are happy to help you increase conversion. Here are some tips to improve conversion rates:
Practice shows that it differs per case and that small nuances can make a big difference. We have committed ourselves to maximizing conversion and are happy to help you with this. Curious about what is realistic in your specific case? Or do you already use open banking and want to improve your own conversion? Then we would be happy to think along with you! You can contact us here.
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