86 400 today announced what it says is the first consumer facing feature to use open banking data in Australia. The neobank’s new savings account comparison tool pulls the saving interest rates of competitors into a “real time” comparison graph by using the product data some banks are now mandated to share.
According to 86 400, if there are any changes to the interest rates of other banks, it will be shown in the graph within an hour of the change taking place.
Under Australia’s new Consumer Data Right and its first use case – Open Banking – banks must share their product data and consumers’ financial data when requested by the consumer in a machine readable way.
The goal of CDR, which was first explored in Australia in 2017 before a multiyear testing and staged rollout, is to give consumers and third parties (when approved by the consumer) better access to financial data. Better access will spur innovation in the industry and reduce barriers to switching, according to the government.
After several delays to the scheme, it began in July with Australia’s largest banks required to share product data, such as the data used in 86 400’s comparison tool. Starting in November, banks will need to also share consumers’ data relating to home loans, investment loans, personal loans and joint accounts.
Open banking first
86 400, named after the amount of seconds in a day, is an Australian digital only bank among the first testers and users of Open Banking data. Today it claimed its new savings rate comparison tool is the first consumer-facing feature developed using Open Banking product data.
“Due to dynamic market conditions, it’s not always easy for consumers to compare the interest rates on different saving accounts. This leads to apathy and a situation where too many Australians have their hard-earned savings netting them next-to-nothing in interest,” said Robert Bell, CEO of 86 400.
“We believe this is the first example of Open Banking product data being used to provide Australian consumers with greater transparency and choice,” said Bell.
“Rates are arguably the most important consideration when selecting a savings account, but often the most confusing. We’re removing the effort of comparing different options by showing how the savings rates of each of the majors compare with 86 400. This is just one way that we are helping Australians take control of their money, and means they can easily find the savings account that best suits their needs.”