Open banking to start from July 2019
You'll soon be in control of your financial data.
In a one-paragraph response to the 140-page Review into Open Banking, released in December 2017, the government announced that it will accept the recommendations of the review which outlined how to implement open banking in Australia.
Open banking will involve consumers being able to control the data that banks hold on them, whether that be to send them to other financial institutions or other authorised organisations.
The implementation of open banking also includes legislating a Consumer Data Right for all Australians. This Right will be implemented with open banking and will mean that you are able to choose who to share your data with, that the parties you share it with are authorised and that they only use it for the purposes you consent to.
Open banking is quite an undertaking, one which the government today announced will have a phased implementation beginning from 1 July 2019. From that date, the major banks will need to begin making certain data available to you at your request.
Data for which you will have control over and be able to share by 1 July 2019 includes credit and debit cards, deposit and transaction accounts. Mortgage data will become available by 1 February 2020. The data for remaining products recommended in the review, which includes personal loans, business loans, consumer leases and overdrafts, will be available by 1 July 2020.
The non-major banks will be required to participate in open banking 12 months after the major banks.
Spotcap Australia and New Zealand managing director Lachlan Heussler says the government's response will revolutionise the financial landscape in Australia.
“Open banking has undeniable benefits in terms of consumer choice and experience. It will break down barriers, encourage competition and help consumers save money through improved price comparison and service switching options."
To find out more about open banking and keep up with the latest open banking announcements, see our guide.