Often consumers do not have clarity of how their data is being used, if they are protected adequately or given informed choices to take their decisions. In the banking and financial industry, this can lead to serious consequences. To address this, open banking is expected to be the positive force that will equip Australians with full control of their personal data at no cost and give them the power to share it voluntarily with TPPs – AISPs and PISPs.
In Australia, the regulation is applicable to individuals and businesses and planned to be implemented first in the banking domain followed by the energy, telecommunication and other industries. The regulation applies to only specific sets of data – customer data, product use data, and product data and specified classes of data holders.
The open banking model will not only help customers with seamless, value-added, and wider variety of banking services, but also support entrepreneurs and businesses to deliver better services. As a result, consumers will be able to:
- track their expenditures across banks and plan better to meet the savings goals
- compare mortgages and choose the most suitable option
- analyse expenses in electricity usage and plan accordingly to save on energy bills
- determine phone bill expenses and choose the most appropriate plan
- choose the most convenient credit card based on needs
Open banking is more than a compliance and banks and financial institutions need to monetize their open banking APIs for long-term success.
How can Virtusa help?
Virtusa offers a robust and OpenID-compliant framework to enable banks forefront as innovation leaders in the market.
Built around API security, and access and consent management, Virtusa’s open banking solutions provide the basis for banks to display banking (products & transaction information) and common (customer data) APIs, open doors for collaboration with fintechs across Australia, and build open applications as per the common data standards (CDS). The solution helps in the following ways:
- Enables banks to expose CDR-compliant APIs for product, transaction, and customer data
- Enables accredited data recipients /TPPs products targeted for the Australian market to be compatible with the bank APIs
- Ensures that APIs conform to CDR standards around data sharing & consent management as applicable in Australia
- Enables customers to use accredited data recipients/TPPs to access their account data and personal data
To know more how CDR is the cornerstone of Australia’s open banking initiative and how banks can unlock new revenue streams in Australia, read our comprehensive FAQs.