Opening the Future of Finance

Open Banking is accelerating the future of finance, creating a world where consumers control their data, businesses innovate faster, and competition drives better outcomes.

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About Open Banking in Australia

  • What is Open Banking?

  • A phased roll out

  • Control over your data

Australia’s CDR in action

Banking was the first sector to launch as part of the Consumer Data Right (CDR) on 1 July 2020. Just as in the UK and other countries, in Australia, this is commonly referred to as Open Banking.

The Consumer Data Right (CDR) puts consumers in control of their data, by giving them the right to share their data between service providers of their choosing. More than 110 banks currently make it possible for their customers to share financial data with third-party providers.

From the Big Four to early adopters

In the early years of Open Banking, the focus was on bringing banks and their products online for consumers. As part of the phased rollout, the Big Four banks were the first to enable data sharing in 2020.

From day one, only two organisations were accredited to receive Open Banking data: Regional Australia Bank and Frollo. Regional Australia Bank applied it to streamline lending applications, while Frollo embedded Open Banking into its money management app.

Transparency, choice and better outcomes

Open Banking puts consumers in control of their banking data, enabling secure sharing with trusted banks, fintechs and brokers. This removes friction from processes that rely on financial information.

It delivers greater transparency, simpler money management, better outcomes for consumers, and fuels innovation and competition across the finance industry.

What are some of the use cases for Open Banking?

There are many different use cases for the real-time, rich and accurate financial data Open Banking provides. These are just a few of the use cases the Frollo Open Banking platform supports.
  • Lending
    A quick and reliable way to get the financial data required to make credit decisons.
  • Money management
    Show a customer all their finances in one place, provide them with insights and the tools to improve.
  • Onboarding
    Streamline customer onboarding with bank verified data in the application process.
  • Financial Advice
    Quickly get an up-to-date financial profile that can be used for financial advice and strategy reviews.
  • Multi-banking
    Show your customer all their finances in your banking app, and get insights into financial behaviour and share-of-wallet.
  • Payments
    Streamline payments and reduce costs by verifying account details through Open Banking.
  • Next best product
    Get customers a better deal on their finances by analysing their financial products and behaviour.
  • Financial hardship
    Take some of the admin out of financial hardship applications by quickly checking your customer’s finances using Open Banking.
  • Identifying vulnerable customers
    Find and proactively reach out to vulnerable customers to prevent them from getting into financial hardship.

What data is available via Open Banking?

CDR roll-out timeline September 2023

What data is available via Open Banking?

When Open Banking launched, only the Big Four banks had to enable their customers to share data. Now, more than 100 financial institutions (Data Holders) let their customers share data, providing more than 99% coverage of household deposits.

Australia’s Open Banking regime is unique in the depth and breadth of data that’s available. Data Holders share data from more than 30 different financial products, including savings accounts, mortgages, business banking accounts and credit cards. This data isn’t limited to just the transactions either; it includes things like rates, fees and product information to enable easy product comparisons and financial advice.

As the Consumer Data Right is continuing to expand, Open Energy and Open Finance will bring different products and providers into the system.

 

Can I rely on Open Banking to build products and services?

Open Banking API performance - Q4 2021 - Q3 2023

Can I rely on Open Banking to build products and services?

Fast and reliable access to financial customer data is crucial for many Open Banking use cases. Unfortunately, it’s hard for businesses to check API performance before they go live. It’s why Frollo tracks and publishes API performance metrics.

As Australia’s leading Open Banking intermediary, Frollo is in a unique position to measure performance for all live Data Holders.

Overall, Australian Open Banking APIs are fast and reliable. They deliver data in close to a second, with more than 99% reliability.

 

What kind of accreditation does a business need for Open Banking?

Growth in number of CDR Representatives and ADRs

What kind of accreditation does a business need for Open Banking?

There are a few different ways for a business to offer Open Banking powered experiences to their customers. In addition to ‘Unrestricted Accredited Data Recipient (ADR)’, there are five more CDR access models a business could utilise to access Open Banking data. Which of these is best for your business depends on your use case, your organisation and how strategic Open Banking data is for you.

The six CDR access models are:

  • Unrestricted ADR
  • Sponsorship model
  • Representative model
  • Collecting Outsourced Service Providers (COSP)
  • Trusted adviser
  • CDR insights

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