What is Open Banking?
Open Banking is the first phase of the Federal Governments Consumer Data Rights (CDR) initiative. Its purpose is to provide all Australian consumers with the rights to safely share their account information.
CDR will eventually cover many business sectors including energy retailers and communication providers.
There are two main functions of Open Banking:
- Product Data – this is information, which all authorised deposit-taking institutions (ADI’s) are required to share in a standard format about their consumer banking products; and
- Consumer Data - which allows members to authorise their ADI’s to share their banking information e.g. balances, transaction history, loan data etc. with trusted third parties e.g. other banks, financial institutions or other authorised organisations such as fintech businesses.
What will Open Banking mean for our Members?
According to the Australian Banking Association (ABA) and the Australian Government, Open Banking will provide the following key benefits for our members and all consumers in general:
- Make it easier to sign up for certain financial products;
- Save time in switching providers;
- Make it easier to find products more tailored and personalised to the consumer
- Supporting the consumer to have a more holistic view of their finances
Our Consumer Data Right (CDR) Policy can be found here.
For Developers go to Comparator Websites: https://consumerdatastandardsaustralia.github.io/banking-products-comparator.