Open banking officially started in July 2020 and is now active in the banking and energy sectors. This guide will take you through what companies are doing with open banking and how you can use their services.
What is open banking?
Open banking is a way for you to securely share your financial and personal data between organisations.
Before open banking, sending your own financial data from your bank to another company was only possible through screen-scraping technology, which allowed companies to get read-only access to your bank statements with your permission.
While screen scraping is still used, open banking offers a government-approved way for you to share your information. This can help you find better products and services, switch products more quickly and take up new financial services, such as budgeting apps.
Is my bank taking part?
Yes, all financial institutions will take part in open banking. However, it has been rolled out in stages.
For example, customers from the Big Four banks (CommBank, ANZ, Westpac and NAB) could share data from some of their personal accounts from as far back as July 2020 while customers of the non-major banks had to wait until July 2021 to do the same.
Now, you should be able to share information no matter who you bank with. You can find out more about the rollout timelines and what types of data are available under open banking here.
Data holder vs data recipient
There are 2 different types of companies taking part in open banking: data providers and data recipients.
Data holders are companies such as banks and energy providers that hold your data. They are required to take part in open banking.
Data recipients are companies that become accredited to receive data. These are companies that have become accredited to securely receive data from data holders. A company can become a data provider and a data holder.
Where you can use open banking
Bank/fintech
Accreditation
Adatree
Data recipient
AGL Energy
Data holder
Alinta Energy
Data holder
AMP Bank
Data holder
Arab Bank
Data holder
ANZ
Data holder & data recipient
Australian Military Bank
Data holder
Australian Mutual Bank
Data holder
Australian Unity Bank Limited
Data holder
Basiq
Data recipient
Bendigo and Adelaide Bank
Data holder
Citigroup
Data holder
Commonwealth Bank
Data holder & data recipient
Credit Simple
Data recipient.
Ezidox
Data recipient
Finder
Data recipient
Frollo
Data recipient
Heritage Bank
Data holder
HSBC
Data holder
Ilion
Data recipient
Intuit
Data recipient
Judo Bank
Data holder
Macquarie Bank
Data holder
MyState
Data holder
NAB
Data holder
Regional Australia Bank
Data holder & data recipient
SISS
Data recipient
Suncorp
Data holder
Tyro Payments
Data holder
Volt Bank
Data holder
Westpac
Data holder
Yodlee
Data holder
Example: How do I use an open banking service?
This will differ depending on what the service is and how the provider has set it up. We can look at how Frollo's open banking process works to get an idea:
Open the Frollo app
Select your bank
You will be shown what data Frollo will receive from your bank
You select how long Frollo can keep the data for
You will be redirected to your bank
Confirm the data that will be sent to Frollo
Verify your identity with your bank
The selected data is transferred to Frollo
Frequently asked questions about open banking
The Consumer Data Right (CDR) was introduced by the government in November 2017 as a way for Australians to have more control of their data. Open banking is the first iteration of CDR in an industry. Following this rollout, CDR will be applied to the energy and telco sectors.
Getting accredited as a data recipient under open banking is a complicated and long process. The regulator needs to ensure anyone receiving data can hold it securely and will use it properly. More companies, such as fintechs, are likely to sign up, but it may take time for them to get their processes in order.
Yes. An example of this is a bank that is required to become a data holder (such as a bank) and that also elects to become a data provider by offering a product powered by open banking, such as an app where you can connect your other bank accounts.
Elizabeth Barry is the lead editor for Finder. She has over 10 years' experience writing about a range of topics with a focus on personal finance. You’ll find her writing and commentary in a range of publications and media including Seven News, the ABC, MSN, the Irish Times and Singapore Business Review.
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