Glossary of Terms & Acronyms – Open Banking in Australia

Glossary of acronyms relating to Open Banking in Australia

 

ACCC Australian Competition and Consumer Commission
ADI Authorised Deposit-taking Institution
AML/CTF Anti-Money Laundering and Counter-Terrorism Financing Act 2006
API Application programming interface
APP Australian Privacy Principle
APRA Australian Prudential Regulation Authority
ASIC Australian Securities and Investments Commission
ATM Automated teller machine
CCA Competition and Consumer Act 2010
CDR Consumer Data Right
CIO Credit and Investments Ombudsman
EBA European Banking Authority
EDR External Dispute Resolution
EU European Union
FCA Financial Conduct Authority (UK)
FOS Financial Ombudsman Service
FSI Financial System Inquiry
GDPR General Data Protection Regulation (EU)
IDR Internal Dispute Resolution
KYC Know Your Customer
OAIC Office of the Australian Information Commissioner
OBIE Open Banking Implementation Entity (UK)
OBWG Open Banking Working Group (UK)
ODI Open Data Institute
OFX Open Financial Exchange
PC Productivity Commission
PSD2 Payment Services Directive 2 (EU)
RBA Reserve Bank of Australia
SME Small-to-medium enterprises

Source: The Australian Government the Treasury, 2017

Glossary of terms relating to Open Banking in Australia

 

Accredited party

A party who has satisfied the accreditation criteria set by the ACCC and can, as a result, enter into data sharing arrangements under Open Banking.

 

Address book The list of Open Banking accredited parties maintained by the ACCC, specifying their level of accreditation.
Aggregated data set

Data sets that use multiple customers’ data to produce de-identified, collective or averaged data across customer groups or subsets.

 

Application Programming Interface (API) Software designed to help other software interact with an underlying system.
Australian Financial Complaints Authority (AFCA)

A new external dispute resolution scheme to resolve disputes about products and services provided by financial firms.

 

Australian Privacy Principle (APP)

Outline how most Australian and Norfolk Island Government agencies, all private sector and not-for-profit organisations with an annual turnover of more than $3 million, all private health service providers and some small businesses must handle, use and manage personal information.

 

Credit and Investments

Ombudsman

An independent industry ombudsman dispute resolution scheme for consumers who are unable to resolve complaints with member financial service providers.
Commencement Date The first day of operation of Open Banking in Australia.
Consumer Data Contact Point

A virtual point of contact, such as a single telephone number and webpage, which connects complainants to complaint handlers.

 

Consumer Data Right

The right of Australian consumers to have open access to their data. The Consumer Data Right was a recommendation of the PC Data Report and the Government has announced it will legislate for this right and implement it sector-by-sector, beginning in the banking, energy and telecommunications sectors.

 

Customer-provided data Information provided by customers to their bank.
Data holder A party that holds data to which the Consumer Data Right will apply.
Data recipient A party that is accredited to receive data under the Consumer Data Right.
Data Standards Body A body to be established to set Standards for the Consumer Data Right and Open Banking.
Extensibility The capacity of a system to be adapted for different purposes.
Financial Ombudsman Service An independent industry ombudsman dispute resolution scheme for consumers who are unable to resolve complaints with member financial service providers.
Fingleton Report Data Sharing and Open Data for Banks report published by the Open Data Institute and Fingleton Associates in 2014 (UK).
Interoperability The ability of software systems to exchange information efficiently.
Middleware Software that acts as an intermediary between other systems.
OAuth 2.0 A widely adopted framework for providing delegated authorisation.
Open Banking A system to give customers access to and control over their banking data and data on banks’ products and services.
Participants All persons and entities (including customers) involved in Open Banking.
Passporting Mutual recognition of accredited parties by different systems.
PC Data Report Data Availability and Use, Productivity Commission Inquiry Report. No. 82, 31 March 2017
Phishing The attempt by a bad actor to gain a user’s credentials by posing as a trusted party.
Product data Information about banking products that banks and other financial service providers are bound by legislation to disclose about those products, such as details on their price, fees and charges.
Read access Access to view data, but not to initiate payments.
Reference data Includes information on branch and ATM location and certain product information.
RESTful APIs Stands for REpresentational State Transfer APIs, which follow the design principles that underpin the World Wide Web.
Rules Rules for Open Banking, addressing customer rights, competition and confidentiality. The Rules are to be written by the ACCC, in consultation with the OAIC and other relevant regulators.
Sandbox A version of a system created to allow new software to be tested without affecting the system that is being used to provide services to customers.
Screenscraping The practice of third parties using a customers’ login credentials provided by customers to extract banking data (such as account balance and transactions) from the information that the customer may see on their internet banking screen.
Standards Specific direction for participants on how to connect, transfer and satisfy the Rules written by the Data Standards Body. The Standards should include detailed information on engineering, technology, data and security.
Transaction data Data that is generated as a result of transactions made on a customer’s account or service.
Use case Where a particular data set has a current and demonstrable application to the provision of a financial product or service.
Value-added customer data Data that has been enhanced by a data holder to gain insights about a customer.
Write access Access to initiate payments from a customer’s account.

Source: The Australian Government the Treasury, 2017

“Contributing towards a stable and inclusive financial sector."


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