Open Banking
Competitive advantage or compliance overhead?
It's here. It went live on the 1st of July and the Australian Government says
"Following the successful implementation by the four major banks of the IT infrastructure needed to enable the Consumer Data Right in banking, “Open Banking” will now commence in relation to deposits, transaction accounts, credit and debit cards.
Open Banking is a game changing reform for Australians and will revolutionise the way consumers and small businesses use their data to compare prices and switch between products and providers in the banking sector."
It's just the start. From what I can tell there are another 39 banks/financial institutions/Fintechs in the que to be accredited. That's around 120 or so still to declare.
Is it worth it? Do all deposit holders and providers of financial products absolutely have to sign up? What happens to the ones who don't?
Has Covid slowed enthusiasm for the investment?
Will consumers rush to get a look at their data?
Will the first adopters have a competitive advantage?
Time will tell, but for now all four of the big banks plus Frollo and Australia Regional Bank are accredited.
Slava Ukraini! Heroyam Slava!
4 年Great questions Diane. Open Banking in other jurisdictions has started slowly (and it looks likely to be the same in Australia), however one thing is fairly certain. In the medium term the "Consumer Data Right" and Open Banking will bring opportunities for organisations focussed on tech savvy customers who appreciate a frictionless user experience, and will bring customer attrition and revenue risk for those who stick their heads in the sand and hope it all goes away...