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…)

Australian Data Exchange Forges A Leadership Path In Data Facilitation.

Personal data shared direct from individuals with consent presents enormous potential for innovation, as well as the development of personalised offers, for banks and businesses, health services and governments worldwide.

While data can be the fuel for a whole host of new services, and the bedrock of a growing sharing economy, the need to ensure privacy and the complexities of compliance are creating significant barriers to entry and causing marketplace challenges. Companies all trying to solve these issues on a one-by-one basis is inefficient, holding back open banking – and the wider data economy – from reaching its true potential. (more…)

REA Group invests in fintech CampaignAgent

The $13.3m investment comes as the original ‘Buy Now Pay Later’ solution for  real estate signals further growth 

Melbourne, 5 February 2021: Today REA Group Ltd confirms a strategic $13.3m investment in  Melbourne-based fintech CampaignAgent. The pioneering ‘Buy Now, Pay Later’ solution for the real  estate industry allows customers to seamlessly pay directly for property marketing costs through its  payment gateway, or simply defer the payment to better align with the proceeds of their sale through its flagship product VPAPay.  (more…)

New Australian fintech innovations are changing the way businesses get paid

Late invoice payments are the number one cause of poor cash flow for SMEs with many reporting they only have enough cash flow to survive for three months or less.

Inefficiencies in operational processes and payments practices plague many businesses and directly contribute to cash flow problems where, on average, Australian businesses are now taking 34 days to pay their invoices. This becomes especially concerning during the COVID-19 pandemic where, at this time, businesses owners need greater transparency and control of money moving in and out of their business. (more…)

Five FinTechs on Friday – February 5, 2021

We cover Five exciting Fintechs this Friday. This edition brings a share register and investor relations platform, a next generation insurance company, an e-invoicing cloud based software solution, a Digital Currency Exchange and digital currency provider for investors and businesses.

Check them out below!

If you haven’t yet signed up for the FinTech Australia Roadshow, we have one scheduled in Brisbane and Sydney. We also have a webinar with Scott Farrell, lead of the Inquiry into the Future Directions for the Consumer Data Right to discuss the recent report.

(more…)

Five FinTechs on Friday – January 29, 2021

We are back in 2021 for our first edition of  Five Fintechs on Friday. This edition brings a renting experience to members of Real Estate Institutes/customers’ platform, an online lender providing loans to small and medium sized Australian businesses, a payments platform that simplifies trade credit for business, an equity crowdfunding platform that connects investors with listed companies raising capital  and a money transfer at low cost platform.

Check them out below!

(more…)

ahm partners with Open to launch new range of car and home insurance

ahm, one of Australia’s largest health insurers, has today launched its car and home insurance offering in partnership with insurtech disrupter, Open.

The two came to an agreement in 2020 after aligning strongly on brand values and technological capability and are today bringing two leading insurance products to market. As part of the arrangement, Open will administer the white-labelled car and home insurance products, managing everything from quote to claim, while ahm will promote the fully branded products to their existing customers as well as the wider Australian market. Both car and home insurance products will be underwritten by Hollard. (more…)

Upcoming Events
  1. B2B SaaS events by AWS

    August 17 @ 8:30 am - 2:30 pm
  2. Intersekt 2022

    September 7 - September 8
Videos

Ep 2: Fintechs Acceleration of Growth Since COVID

Ep 1: The Evolution of Payments

Scaling Product Globally

Podcasts

Lee Hatton – Afterpay: FinTech Australia Podcast

Anthony Jones – Visa AUS/NZ

Tim Cameron – TransferWise