4 Ways Open Banking Enhances Sports Betting

Obtaining and retaining players is an essential part of the success of any gaming operator. Open Banking technology allows operators to provide fast, easy, and seamless customer experiences to ensure player loyalty and satisfaction. 

Player experience and satisfaction are critical in the sports betting industry. Operators can take advantage of the unique benefits Open Banking can provide to improve their sports betting platform and optimize it to perform at the highest levels of play. 

Open Banking and Sports Betting: An Overview

Ever since sports betting was legalized through the landmark Supreme Court decision, many states have steadily allowed sports betting within their borders. With new interest in sports betting, and new states legalizing it, Operators now have a broad player base spanning many states, with their own regulations and operation guidelines. To simplify several processes, Open Banking technology can provide many valuable benefits to improve operational efficiency, reduce overhead costs, and provide the best experience for players. 

In fact, Trustly has provided Open Banking services to gaming operators such as PointsBet to optimize their payments platform. The results showed a 210% year-over-year growth in completed transactions, 19% year-over-year growth in total payment volume, and a >90% approval rate. In addition, Trustly’s Open Banking services also helped Points Bet launch in New York, Kansas, and Louisiana with only two weeks' launch time when the industry standard is 30 days.

Open Banking, as evidenced through our relationships with our gaming partners, has provided the sports betting industry with tangible growth opportunities, fast deployment in new states, and the ability to streamline payments processes that not only improve the bottom line but also enhance the gaming experience for all parties involved. 

How Open Banking Improves Sports Betting

Open Banking improves sports betting and online sports books by providing solutions on four key pain points: quickly onboarding new players, providing instant payouts to improve handle, reducing the risk of fraud using bank-grade data, and enhancing VIP programs. 

Onboarding New Players 

Simply put, 63% of consumers want easy onboarding processes to get them started. Instead of players putting in several pieces of account information such as account numbers, routing numbers, and verifying with bank statements or micro-deposits, operators can pull data directly with Open Banking APIs. 

With minimal hassle and friction, this can ensure that players have an easy time signing up with an operator and can get to betting quicker. Open Banking APIs make the onboarding process easy and aid in reducing new player churn.

Providing Instant Payouts for Players

When players win money, they don’t want to wait days on end to receive their winnings. PYMNTS reports in a recent survey that instant payouts are the preferred way for players to receive their winnings. Open Banking can provide instant payouts to players so they can receive their winnings fast and have an increased handle on their funds. 

As a bonus, the faster players receive their winnings and have direct access to them, the more inclined they are to continue using the sports betting platform and place more bets on upcoming games. Games such as football, basketball, baseball, etc., often happen multiple times throughout the week on set schedules, so the faster players can receive their winnings, the more they can continue playing and betting on future games.

Easier Fraud Prevention 

Typically, Operators tend to carry out AML and KYC checks by asking players to provide bank statements, ID, or through other manual forms of verification. However, these processes often take significant time, and will search for other options that verify them much faster. Despite this, there’s no way around these processes because not doing them or shortening them puts operators at risk for fraudulent activities. 

Open Banking Data not only streamlines the onboarding process but also helps improve KYC and AML processes to keep fraudsters at bay and ensure that security measures are in place to minimize the risk of malicious actors. Operators can harness data obtained through Open Banking APIs to accurately and quickly verify players and assess their overall risk profile.

Bolstering VIP Programs 

Aside from reducing fraud and improving player onboarding, Open Banking Data can also be used to strengthen VIP and loyalty programs operators provide by examining player interactions and transaction data to see how often they play and how much they spend. With these insights, operators can personalize their VIP programs to each player, allowing for better retention. 

As stated by our VP of Gaming, John Parsons, for SBC America, by using “information from the player’s betting and deposit history, along with KYC information collected during onboarding,” Operators can provide players with “higher limits and a more straightforward betting experience, effectively using their own financial data to their advantage.” Operators can leverage financial data to improve player satisfaction with tailored betting structures and rewards for playing. 

Future of Open Banking and Sports Betting 

As sports betting continues to legalize throughout the nation, it’s essential that Operators stay ahead of the curve to ensure a healthy and satisfied player base. Open Banking technology offers operators the tools needed to provide instant payouts, enhance VIP programs, and connect with banks directly to simplify onboarding and reduce the risk of fraud. To see how Trustly can help you get your sports betting platform ahead, request a demo today.