A neobank, budgeting tools and payment services are among the first 10 companies selected by the ACCC to trial data sharing as part as Australia’s incoming open banking regime.
Open banking, based on the recently passed Consumer Data Right (CDR) legislation, is set to kick off formally in February 2020, with the big four banks as the data sharers.
The new rules mandate that banks share customer data, if the customer chooses, in a machine-readable way. In the lead up to the launch, the ACCC invited data recipients to participate in testing the CDR ecosystem.
The ACCC received 40 expressions of interest and 10 applicants were successful:
- Frollo Australia
- Procure Build
- Regional Australia Bank
- Verifier Australia
- Wildcard Money
- Intuit Australia
The selected recipients will have access to data to offer a broad range of services to consumers, such as assisting small businesses to manage their bills, including to speed up making and receiving payments, assess a consumer’s financial well-being, managing personal finances and budgeting, and facilitate book keeping and accounting by small businesses and professionals.
Brian Parker, Chief Information Officer at recently launched neobank 86 400, said the bank is delighted to be chosen to be as one of the first to participate in the testing of the CDR ecosystem.
“We firmly believe Australians should be in control of their own financial data, enabling them to choose where – and with whom – they securely share that information,” Parker said.
“This belief is why we built our smartbank, 86 400, with open banking principles firmly in mind. We look forward to helping bring the open banking ecosystem to life so Australians can access better banking services, take control of their finances and switch banks if and when the time is right.”
Speaking at an open banking event hosted by Finder last week, ACCC General Manager, Consumer Data Right Branch Bruce Cooper said the goal is to bring another 100 banks into the regime over the next year as part of a controlled launch.
Moneytree, a leading fintech business providing a personal finance and budgeting app to individuals, was also selected be among the first organisations outside of the Big Four banks to test the exchange of financial data under open banking.
“The rules and standards for this new business environment offer huge potential for financial services organisations to improve their customer experiences. Data exchange will have less friction and customers will become more empowered to manage their data, determining who to share it with, for how long and for which purposes,” said Ross Sharrott, Moneytree Founder, Chief Technology Officer, and Executive Director for Australia.
“At the same time, the protections and guarantees for the end-users are high and better than what existed prior to Open Banking being implemented,” he added.
The testing participants will have the opportunity to be the first in the CDR ecosystem from February 2020. However, they will still need to achieve accreditation under the CDR Rules.
The ACCC has released its CDR accreditation guidelines, to provide information and guidance to assist applicants with lodging a valid application to become an accredited data recipient. The accreditation guidelines also include supplementary guidelines relating to information security and insurance obligations.
The regulator noted that the accreditation guidelines will be updated as the CDR ecosystem evolves, for example to include additional sectors like energy or telco.