Open Banking allows access to certain consumer banking and financial account data through third-party applications.
Learn more about the basics of Open Banking in this article.
Australia’s Consumer Data Right (CDR) ‘opens’ the following data to be shared among participating banks, credit unions, fintech companies, and utility providers such as gas and electricity companies.1
This may include a person’s bank account information, such as the account holder’s name, account balance, payees, direct debits, and scheduled payments.
Examples include data regarding financial product use, such as overdrafts, interest rates, and electricity usage.
Open Banking may also enable third-party providers to access details about payment amounts, payee details, and purpose of a payment.
In Australia, such access is only permitted after someone gives their consent for their data to be accessed by a bank, credit union, fintech company, energy provider, or regulated payment provider.
With Open Banking and the CDR, individuals can:
Open Banking is in its early stages in Australia. Here are some examples of its potential use cases:
There are several potential benefits of Open Banking, such as:
There may also be risks to Open Banking. Keep these potential concerns in mind:
There are stringent regulations and rules regarding what, when, where, and how often consumer data can be shared. Protect yourself from fraud by only allowing trusted financial providers to access data. Also, review access levels regularly and only share the required level of information needed.
Open Banking may be a fairly recent introduction in Australia, but growing awareness and adoption could support ever-changing finance habits, needs, and preferences. Learn how PayPal works to protect data.
We'll use cookies to improve and customise your experience if you continue to browse. Is it OK if we also use cookies to show you personalised ads? Learn more and manage your cookies