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
More guides on Finder
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Open banking in Australia
Open banking has started! Find out exactly what open banking is and how it's going to change your finances.
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