Australian Open Banking reaches inflection point with industry-wide momentum building

Report shows dramatic growth in usage while identifying key barriers to broader adoption

Open Banking has been pulled in competing directions over the past 18 months, but momentum is building and most industry participants are optimistic about the future, according to Frollo’s State of Open Banking 2025 report released today.

Tony Thrassis, Head of Open Banking Markets and Compliance at Frollo, says while there’s still work to be done, the direction is clear: “A more focused direction is taking shape. Two things are clear: there is much to be hopeful about, and there is still a lot of work to be done.”

“Open Banking is no longer a theory. It’s working,” the report concludes. “Momentum is building, and we must keep moving. More importantly, we must collectively move from viewing the CDR as a burden to seeing it as the national asset it truly is.”

Momentum building across the ecosystem

The numbers reflect growing adoption:

• 1.88 billion API calls in the past 12 months – more than double the previous year

• Major banks including CBA, Westpac, and NAB now actively integrating Open Banking

• Growing number of connected accounts, participants, and accredited data recipients

Real benefits for Australian consumers

Open Banking is delivering meaningful financial benefits directly to consumers. Australians using money management apps are saving an average of $330 per month, with account balances increasing 13% and savings growing 21% after just three months of use.

“Open Banking gives people the power to choose what to share and who to share it with,” says Kris Davant, Head of Product at Frollo. “We’re seeing how this sense of control can improve financial planning conversations, particularly when people are just getting started or going through a life event.”

Mortgage brokers proving what’s possible

In Australia’s $3 trillion mortgage industry, brokers are leading the charge and proving what’s possible with Open Banking. Handling more than two-thirds of all home loans, brokers have embraced the technology with enthusiasm, demonstrating its transformative potential.

Tony Carn, Chief Customer Officer at NextGen, describes the impact: “It’s a generational game changer for the mortgage industry. Open Banking helps brokers take a much more proactive role in helping people get fit for finance, removing administrative barriers and allowing more focus on meaningful customer relationships.”

The transformation is measurable:

• Complete client financial data now available on average in just 7 minutes after consent is granted

• Over 32,000 Australians used Frollo Open Banking with their mortgage broker in the past year

• Brokers save around 40 minutes per client through integrated CRM solutions

• Elimination of risks from manipulated bank statements

Challenges remain, but solutions in sight

Tony Thrassis acknowledges ongoing challenges, particularly around consent authorisation failures during bank authentication – with nearly 30% of consent authorisations failing at the bank level, and some major banks recording failure rates as high as 31.5%.

“Out of more than 11,000 Frollo users who shared feedback, over 10,000 identified failed consent as the primary issue,” Thrassis said. “88% of failures are due to login issues, one-time passcode problems, or technical errors.”

However, the formal CDR reset is “yielding results,” with Treasury leading meaningful consultations that have expanded CDR to non-bank lenders, improved consumer consent experiences, and streamlined processes.

Screen scraping concerns persist despite Open Banking’s growth, risky screen scraping practices continue. “The government proposed banning screen scraping ‘in the near future’ back in 2022, but no formal action has been taken,” Thrassis noted. “Without clear government policy, we’re in a grey zone that creates confusion for consumers and undermines the CDR’s core security promise.”

Industry optimism for the future

The report highlights that early adopters are already having success, and others will soon have no choice but to follow if they want to stay competitive.

“It’s not a matter of if, but when,” the report states, emphasising that “this report contains plenty of reasons to stay optimistic – and, I hope, a renewed sense of energy for the road ahead.”

Looking ahead

The next phase will focus on Action Initiation, Agentic AI integration, and clearer government policy settings. With momentum building and more data holders realising they can benefit from being data recipients, the tide is turning.

As the report concludes: “The CDR sets Australia apart and helps people take better care of their money. More importantly, we must collectively move from viewing the CDR as a burden to seeing it as the national asset it truly is.”

About the Report

The State of Open Banking 2025 report features contributions from leaders from across, Connective, FinTech Australia, FBAA, MFAA, NextGen, WeMoney and other industry leaders, providing insights and analysis of Australia’s Consumer Data Right implementation.