Government may consider phased implementation of open banking
A new government Issues Paper has outlined considerations for achieving a "vibrant" open banking regime in Australia.
The Australian government has today released an Issues Paper on open banking where it said the review will consider a phased implementation of the regime. Open banking is the concept of consumers having greater control of their financial data and was announced in this year's Federal Budget.
The Issues Paper said that a phased implementation is being considered to "enable timely implementation, minimise the burden on industry and build customer trust."
FinTech Australia, the peak body for Australia's fintech industry, has welcomed the Issues Paper and is interested in the phased implementation.
“This paper provides further clarity about key issues that need resolution in order for us to proceed with this important and long-awaited reform to improve consumer choice and banking competition,” said FinTech Australia CEO, Danielle Szetho.
“In particular, FinTech Australia is interested in further discussing the possibility of a phased introduction of the regime to ensure its timely implementation, and we will be working closely with our members to gather their perspectives on how this might work."
The paper also said it may consider "other forms" of phased implementation in order to have more time to learn from the initial operation of open banking in other jurisdictions.
There are open banking regimes in operation in several markets. Specifically, the issues paper calls attention to regimes operating in the United Kingdom and the European Union and also the soon-to-be implemented regimes in Singapore and Japan.
"In addition to drawing on experiences in other jurisdictions, this Review may consider the degree to which alignment with Open Banking regimes in other jurisdictions is desirable or necessary," the paper said.
The Issues Paper can be found here. Interested parties looking to make a submission are invited to do so by Friday 22 September 2017.