Top 10 Open Banking Myths holding mortgage brokers back, and why it’s time to rethink them

Open Banking is no longer an emerging concept, it’s already embedded across Australia’s financial ecosystem and increasingly aligned with how lenders assess applications. Yet many brokers remain hesitant to adopt it, not because of the technology itself, but due to lingering misconceptions around security, effort, client behaviour, and lender acceptance.

The reality is that Open Banking is designed to make a broker’s job easier by improving data quality, reducing admin, and delivering a better client experience. It’s already reshaping how brokers collect financial data, prepare submissions, and support clients more efficiently.

Below, we unpack the 10 most common myths brokers raise about Open Banking, and the reality behind each one.

1. Open Banking is risky
2. Clients won’t want to use it — they prefer PDFs
3. The data isn’t complete or accurate enough
4. It won’t save me much time
5. Lender adoption is still evolving, so there’s no urgency
6. It’s expensive to add another tool
7. It’s hard to set up and will disrupt workflows
8. Screen scraping works fine, why change solutions?
9. Open Banking shares too much data and creates more work for assessors
10. Consent is complicated and clients will drop off

1. Open Banking is risky

Sharing financial data sounds unsafe, especially compared to emailing PDFs or screenshots.

Reality: Open Banking is secure. It operates under Australia’s government-regulated Consumer Data Right (CDR) framework and requires explicit client consent. This means clients don’t ever need to share banking passwords, rely on screen scraping or unsecured documents. Compared to emailed PDFs and screenshots which can be altered, incomplete, or intercepted, Open Banking significantly reduces risk for both brokers and clients.

2. Clients won’t want to use it — they prefer PDFs

Brokers often assume clients will resist new technology or prefer familiar processes.

Reality: Today’s clients expect fast, secure, and simple digital experiences. When given the choice between manually uploading bank statements or using a bank-grade digital connection, most choose the quicker and easier option. Open Banking reduces effort for clients and eliminates the frustration of searching for, downloading, and submitting multiple documents. And the proof? Consumer adoption is exploding. NextGen data shows 56,283 consumers completed their Financial Passport in the past six months — more than double the 22,529 recorded previously(a 149.8% jump). CDR isn’t just being accepted; it’s being rapidly embraced.

3. The data isn’t complete or accurate enough

Some believe bank feeds may miss transactions or accounts.

Reality: Open Banking provides real-time, CDR-certified data directly from the source. This ensures higher accuracy, completeness, and consistency compared to manually supplied statements. Another key advantage is refresh capability, during the consent period, brokers can update financial data without asking clients to resubmit documents, keeping applications current right through to approval.

4. It won’t save me much time

There’s a perception that Open Banking is only marginally faster.

Reality: Open Banking can shave days from fact-finding, financial analysis, and submission preparation. Brokers no longer need to chase clients for statements, review redacted screenshots, or manually summarise transaction data. With verified financial data available upfront, submissions move faster and clients experience a smoother, less stressful process. Many brokers are seeing verification time go from two hours to just 15 minutes, delivering significant time savings.

5. Lender adoption is still evolving, so there’s no urgency

If lenders aren’t mandating Open Banking yet, brokers don’t need to prioritise it.

Reality: Many lenders are already activating Open Banking behind the scenes. The quality and consistency of CDR data aligns closely with lender credit and risk assessment requirements. Brokers who adopt early are seeing fewer more information clarification requests, faster turnaround times, and stronger submissions, creating a clear competitive advantage.

6. It’s expensive to add another tool

Some brokers assume Open Banking adds cost to an already growing tech stack.

Reality: Open Banking doesn’t have to add cost. Solutions such as Frollo for Brokers are free for all MFAA or FBAA accredited brokers or available through aggregators with CRM integrations including Connective, Mortgage Choice and Finsure. Instead of adding complexity, Open Banking reduces time and operational effort, delivering value without additional expense.

7. It’s hard to set up and will disrupt workflows

Brokers think it’s a complex system that requires big changes.

Reality: Modern Open Banking tools are built specifically for brokers and integrate easily into existing workflows. They are designed to be simple, intuitive, and quick to adopt, many brokers are already using Open Banking as part of their day-to-day process with minimal disruption. A common best practice is introducing Open Banking to clients to securely connect their accounts at the start of the fact-find process.

8. Screen scraping works fine, why change solutions?

It’s familiar and functional, there’s no need to switch.

Reality: Screen scraping is being phased out across the industry. Clients are increasingly uncomfortable sharing banking credentials, a practice that exposes them to unnecessary risk. Banks are increasingly adopting two-factor authentication to their banking systems, this stops screen scraping from working effectively. Open Banking replaces this approach with a secure, credential-free, government-regulated alternative that’s safer for clients and more dependable for brokers.

9. Open Banking shares too much data and creates more work for assessors

Assessors don’t want to review more data than necessary, so it’s safer to stick with manual statements.

Reality: When Open Banking is initiated through Frollo, brokers remain in control of what is shared. Brokers can select 1, 3, 6, or 12 months of statement history to meet each lender’s requirements — no more, no less. This ensures assessors receive the right level of data without unnecessary overload, helping streamline the credit assessment process.

10. Consent is complicated and clients will drop off

Brokers worry the consent process is confusing or too long, causing clients to abandon the application.

Reality: Open Banking consent flows are designed to be fast and familiar. Most clients complete the process in around 7 minutes using a secure, bank-grade experience. This makes it faster and easier than downloading and uploading multiple bank statements.

The bottom line

Open Banking removes friction from the broker fact-finding process, making it easier to obtain a complete and more accurate financial picture of clients while improving data quality for loan application preparation.

As client expectations evolve and lenders continue to modernise, brokers who embrace Open Banking are better positioned to move faster, reduce risk, and deliver stronger outcomes. For many, Open Banking is no longer a future concept, it’s already the standard for gathering financial data and progressing applications faster.