Open Banking is scheduled to launch in Australia on 1 July 2019, starting with the major banks. This will have significant implications for Australian ADIs and their customers.
Open Banking – in a nutshell
Under Open Banking, customers will be given the right to direct that the information they already share with their bank be safely shared with accredited, trusted parties of their choice.
As expressed in the Australian Government-commissioned “Review into Open Banking Report” (dated December 2017), Open Banking is aimed at giving customers:
- • more control over their information;
- • more choice in their banking;
- • more convenience in managing their money; and
- • more confidence in the use of their bank data.
For ADIs, Open Banking means that they will – at a minimum – need to have an effective application programming interface (API) in order to meet their data-sharing obligations. The full implications of Open Banking for ADIs, however, will extend beyond just APIs.
Gen Advisory’s view is that Australian ADIs should consider Open Banking not just as a compliance burden, but a strategic opportunity. Open Banking provides all ADIs, regardless of size, with the opportunity to identify a niche area of expertise and deliver unique products and services.
Gen Advisory’s detailed research on Open Banking is displayed below.
How Gen Advisory can assist financial institutions on Open Banking
Drawing from our toolkit of services, ways in which Gen Advisory can assist financial institutions on Open Banking include the following:
- • Ascertaining the institution’s understanding of, and preparedness for, Open Banking.
- • Delivering bespoke training on Open Banking.
- • Delivering bespoke research on a specific Open Banking-related area of interest.
- • Designing an institution-specific technical assistance programme on Open Banking.
- • Managing and executing, on the institution’s behalf, a project on Open Banking.
- • Drawing from Gen Advisory’s network of FinTech Australia members, partnering with suitable FinTech service providers if needed.
- • Conducting due diligence on prospective FinTech partners.