Open Banking is the first phase of the Australian Government legislation for Consumer Data Rights (CDR) that gives consumers greater control over their banking data and how it is used. Following phases of the CDR will cover telecoms and utilities.
On 1 July 2020, Open Banking was launched, enabling customers of the big four banks to securely share their banking data with accredited third parties. All other banks are required to support Open Banking from 1 July 2021 and BankVic is on track to offer the service to our members with phased product rollouts from July 2021 through November 2021, as mandated by the government.
Open Banking gives you the ability to share your banking data, including account information, balances, fees, and transactions, with third parties that have been accredited by the Australian Competition and Consumer Commission (ACCC). These third parties can be any organisation that has met the accreditation requirements of the ACCC, examples would be other banks and financial institutions, FinTech companies, or any company that wants to offer products and services that require visibility of your banking data.
To allow an accredited third party to access your banking data you will need to give informed consent to access specific accounts, the frequency of access, and for how long access is allowed. For example, you could give daily access to a budgeting App or one-off access to allow the completion of a loan application.
The basis for the CDR and Open Banking is to allow Australian consumers to benefit from their data held by third parties, to improve competition and drive innovation. BankVic is committed to ensuring that our members have these opportunities, both to share banking data held with BankVic but also to share banking data held with other institutions with BankVic to help us provide you with better products and services.
Keep an eye out for further updates on Open Banking as we get closer to the launch date and ideas for how you can benefit from the data we hold on your behalf.