New CREALOGIX survey reveals retail banks’ “hot topics”

This article was originally posted from the Crealogix blog.

What are the “hot topics” in terms of trends and technology? And what solutions are banks looking for to grow through digital innovation?

CREALOGIX conducted a survey with the retail banking community*.
Generally, the banks’ responses centred around three main topics: (more…)

A new model for mutual banking

This article was originally published on AB+F, an RFi Group company website.

Teachers Mutual Bank Limited CEO Steve James knows the importance of reinvention as he signals a planned initiative that will underpin a kind of hybrid bank. (more…)

The Open Banking implementation timeline – Frollo

The Consumer Data Right (CDR) officially launched in Australia on 1 July 2020. With banking as the first sector to go live, Open Banking is here and is a game changer for the financial sector in Australia.

Though, change at this scale doesn’t happen at the flick of a switch. Australia’s Open Banking implementation timeline currently stretches to February 2022 with a number of key milestones and a lot of upcoming work still ahead.

The Open Banking implementation timeline

The below timeline shows the milestones for implementation as currently known. Each of the implementation milestones adds new products or Data Holders sharing their data.

What’s included in the February 2021 CDR release?

As you can see in the timeline above, the February 2021 release consists of two things:

  1. Big Four Banks – Consumer Data phase 3
  2. Non- Major ADIs – Product Data phase 2

The Big Four Banks are the ‘Initial Data Holders’ and were the first to launch consumer data sharing in July 2020.

Although the Big Four have a lot of customers, the impact of Non-Major ADIs going live is not to be underestimated: there are over 100 Non-Major ADIs, with a lot of customers. The list includes banks like Suncorp, P&N Bank, Bank of Queensland and many more.

What’s the difference between CDR consumer data and product data?

CDR consumer data is data related to a specific consumer and their financial products. Depending on the type of product this can include transaction data, account balances, direct debits, payees and more.

Consumers can consent to sharing this data with accredited third parties.

CDR product data is information about the financial products a Data Holder offers, like features, rates and fees. This information is also called Product Reference Data and is publicly available to anyone via APIs.

What are CDR product phases?

The implementation timeline refers to three phases, each of which includes a number of different products.

Phase 1 includes

Savings accounts, call accounts, term deposits, current accounts, cheque accounts, debit card accounts, transaction accounts, personal basis accounts, GST or tax accounts, personal credit or charge card accounts and business credit or charge card accounts.

Phase 2 includes

Residential home loans, investment property loans, mortgage offset accounts and personal loans.

Phase 3 includes

Overdrafts (personal and business), business finance, investment loans, lines of credit (personal and business), asset finance, cash management accounts, farm management accounts, pensioner deeming accounts, retirement savings accounts, trust accounts, foreign currency accounts and consumer leases.

If you want to know exactly which products are in scope and why, read the guidance for Data Holders on the CDR website.

When in February is the CDR release happening?

There’s no one specific date on which every non-major ADI will publish their product data, and every Big Four Bank will make the additional products available for sharing.

Some Data Holders started publishing mortgage product information as early as December last year (for example P&N Bank and Credit Union SA, using Frollo’s PRD Portal).

Though it’s expected that by the end of February, most of the scope will be implemented.

Have a look at the official CDR phasing table for more details

How does this impact consumers and businesses?

Although the February 2021 release isn’t as big as the July 2020 launch, or the November 2020 release (when joint accounts became available), there are some exciting things to expect.

Product information

The availability of up to date, accurate product information for mortgages and personal loans via public APIs is an exciting prospect.

It means businesses can use information like product features, fees and rates from over 100 Data Holders to help consumers get a better deal on their finances.

As the most active data recipient using CDR data, we have noticed that banks have struggled to get all the required data into the correct format. This may mean that ADR’s that follow will need to interpret the data before using.

How the Frollo app uses product information

Frollo has been testing the use of Open Banking product information in our budgeting app over the last few months, with a number of beta features:

  1. Real time product information showing rates, fees and features for accounts linked using CDR
  2. Product comparison showing the real impact of different savings account on your finances
  3. Next best action showing users when they’ve missed their bonus interest and what they need to do to receive it going forward

Consumer data

When each of the Big Four Banks has implemented the February 2021 scope, their customers will be able to share their data for products like overdrafts, lines of credits and cash management accounts with accredited third parties.

How the Frollo app uses consumer data

In the Frollo app this means consumers will get a more complete picture of their finances, as they’re able to view more of their financial products in the app.

Frollo uses this information to help people turn around their finances by giving them a full picture of their finances, providing them with insights and the tools to take action.

The Frollo Open Banking platform

Frollo is leading the charge in Open Banking. Our market leading Open Banking platform helps businesses leverage CDR data to get ahead of the competition.

Get in touch to discuss how we can help you:

2021 Outlook by Christian Westerlind Wigstrom, CEO Monoova

It’s difficult to be original. I, too, write lists at the beginning of years with plans, expectations, and aspirations. I, too, was wrong about 2020 as the year of travel and international expansion and so many other things. But there was one thing on my list that I wasn’t wrong about: ‘there is huge opportunity in payments’. (more…)

Businesses missing the benefits of fintech, say Airwallex and CPA Australia

Global fintech unicorn Airwallex and Australia’s leading professional accounting body CPA Australia, launched the ‘The Role of FinTech in Modernising Businesses’ report today, which aims to educate businesses on emerging fintech solutions and drive fintech adoption. (more…)

Deteriorating payment times in construction threaten economic recovery

In a worrying sign, payment times are worsening in the construction sector, according to CreditorWatch’s latest Business Risk Review. This could have consequences for the broader economy and may indicate the fledgling economic recovery is under threat.

According to the January Business Risk Review, payment times in construction rose by 47 per cent year-on-year in January. On a monthly basis, construction firms are now on average 44 days late paying their bills, versus the December result of 35 days. (more…)

Full Profile's AgriDigital successfully executes world's first settlement of an agricultural commodity on a blockchain

AgriDigital has successfully executed the worlds first-ever live settlement of a physical commodity on a blockchain between a grower and a buyer.
Real-time payment has huge implications for the agri-supply chain as it eliminates the counterparty risk that all sellers face. (more…)

Opinion: Testing Digital Advice Algorithms

The below opinion piece is in response to a recent submission by the Financial Planners Association in response to ASIC’s Robo Advice Consultation Paper 254. (more…)

Building fintech castles in ASIC’s regulatory sandbox the play we need

This piece originally appeared in The Australian on June 14, 2016. View the original here.

When peer-to-peer lender MoneyPlace built its founding team no one anticipated that it would take 18 months to gain regulatory approval. Thats a long time in limbo for any business but for a start-up a delay of this length can be crippling. (more…)

Why the Fintech Regulatory Sandbox is a Game Changer

Today ASIC released its consultation paper on the regulatory sandbox to our Fintech
Melbourne community.

It provides details of the plan that allows early stage fintech startups to test their products on
customers. (more…)

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