State of Open Banking 2026 report finds active authorisations near 1.35 million, with consent, reliability and three policy decisions set to shape what comes next
Open Banking is now part of how Australians bank and borrow, and the focus has shifted to making it work for everyone, according to the State of Open Banking 2026 report, Frollo's fifth annual edition, released today.
Six years after banking data was first shared under the Consumer Data Right (CDR), active authorisations reached 1,347,328 in June 2026, and consent volumes have grown 4.83 times in two years.
Tony Thrassis, Head of Open Banking Markets and Compliance at Frollo, says the conversation has moved on.
"The foundations are in place, and the momentum is real. The question is no longer whether Open Banking works. It's how quickly we can make it work for everyone."
The report draws on ACCC CDR performance data, NextGen and Frollo data, and interviews with leaders from FinTech Australia, the Data Standards Body, Verifier, SISS Data Services and Beyond Bank Australia.
Growing fast, and holding its own globally
Active authorisations: 1,347,328 in June 2026.
Consent growth: 4.83 times over the 24 months to June 2026, with no sign of a plateau.
API invocations: 4.48 billion in FY25-26, up 125% on the year before.
Australia sits a little behind the UK, which started first, but ahead on broader, multi-sector data sharing. New Zealand and Canada are close behind.
Dr Scott Farrell, Data Standards Chair, sees that as a good thing for Australians.
"This is what I describe as a truly friendly competition. For the Australians we serve and the Australian businesses that serve those Australians, this is really a win-win. I'm quite happy with the trajectory we're on right now."
Lending is leading
Applications using Open Banking data through NextGen grew 234% over FY25-26. In September 2026, 10.1% of all loans submitted through NextGen's ApplyOnline® used Open Banking.
Beyond Bank Australia, the first branch-based lender to bring Open Banking into its branches, is turning applications around 50% quicker than under its old process.
Wendy den Hartog, Chief Operating Officer at Beyond Bank Australia, says the question for banks has changed.
"When Open Banking started, it was probably seen more as a regulatory initiative, and it's taken some time across the industry to really start to see progression and further use cases coming through. Now it's no longer whether it's something that you want to adopt. It's about how quickly organisations can take the services and embed them into core lending processes."
Better data, and a consent journey ready for its next step
Data quality has been the standout improvement of the past year. SISS Data Services, which supplies bank data into accounting software, now runs more Open Banking feeds than direct bank feeds.
"All the banks are genuinely committed to making this work," says Grant Augustin, Founder and CEO of SISS Data Services. "The data quality has now reached the point where we are seeing much more consistent use of Open Banking."
The consent journey is the biggest opportunity ahead. Across three of the largest banks examined, around two in three abandoned consents happen in the first two steps at the bank, when consumers identify themselves and complete authentication. Reliability also needs to keep pace, with server-side errors growing faster than volumes in FY25-26.
Guided journeys are already making a difference. Verifier lifted its CDR business consent rate by showing users exactly what to do next, based on the bank they were using. Business consumers still face the hardest path, with manual nominated representative processes driving drop-out of 50 to 60%. On Verifier's consumer lending applications, drop-out is just 3%.
"We're finding CDR fantastic. It's working really well for Verifier and its consumer lending customers, we just need the same for business consumers," says Lisa Schutz, Founder and CEO of Verifier.
Three decisions worth $1.2 billion a year
Modelling by Lateral Economics for FinTech Australia found three policy decisions could add $1.2 billion a year to the economy by 2035: keeping smaller banks in the CDR, introducing third-party disclosure consent and simplifying nominated representative arrangements for businesses. Frollo opposes the proposed de minimis exemption that would let smaller banks exit the CDR.
For Rehan D'Almeida, CEO of FinTech Australia, fixing nominated representatives would open the CDR to small business.
"The moment we get nominated representative clear, then opening this up to SMEs becomes really important. It's not just accounting; it opens up to lending and cash flow."
Looking ahead
The report also finds verified data is becoming a key safeguard as AI makes financial documents easier to fake. The CDR gives Australia a ready-made framework of standards, rules and law for AI agents and agentic commerce.
"What's needed now is a shared focus on the friction points we already know: a smoother consent journey, reliable infrastructure at every bank, and policy settings that let data flow to where consumers and businesses need it," says Tony Thrassis. "With industry and government working together, I'm confident the year ahead can be one of Open Banking's strongest yet."
Read the full State of Open Banking 2026 report at https://frollo.com.au/the-state-of-open-banking/
About the report
Now in its fifth year, Frollo's State of Open Banking report draws on the ACCC's CDR performance dashboard, NextGen and Frollo data, and interviews with Grant Augustin (SISS Data Services), Rehan D'Almeida (FinTech Australia), Wendy den Hartog (Beyond Bank Australia), Dr Scott Farrell (Data Standards Chair) and Lisa Schutz (Verifier). The foreword is by Tony Thrassis, Head of Open Banking Markets and Compliance at Frollo.
About Frollo
Frollo is Australia's leading Open Banking provider, empowering enterprise businesses, mortgage brokers and consumers with tools to unlock a more open, data-driven world. Its technology serves verified financial data to more than 1.6 million customers, and more than 140,000 consumers use the Frollo app. Frollo was the first accredited data recipient in the Australian market and is a subsidiary of NextGen.
