Article: Opening up banking: the emergence of open banking ecosystems

Money, Open Governance

Opening up banking: the emergence of open banking ecosystems

Modern banking is characterized by fierce competition from fintechs, technology giants and changing customer expectations. Banks are increasingly leveraging technology to modernize themselves and deliver personalized, convenient, and comprehensive products and services to customers.

As such, open banking models are gaining momentum and will most likely be the norm for the sector in the years to come. In fact, studies indicate that open banking users are expected to increase from 18 million in 2019 to 40 million in 2021. The ongoing pandemic is also contributing to the growing acceptance of open banking as end users seek better insights into their overall financial health.

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Article: Why the 2021 Federal Budget was promising for open banking

Money, Open Governance

Why the 2021 Federal Budget was promising for open banking

This year’s Federal Budget, which focused on Australia’s economic recovery from the COVID-19 pandemic, included a $1.2 billion technology package centered around digital skills and cyber security. While it was relatively quiet for the FinTech sector, the announcement of a $113 million investment into the rollout of the Consumer Data Right (CDR), the legislation behind open banking, has the power to spearhead growth in the finance sector and increase Australians’ financial wellness.

The Australian Government announced the introduction of a CDR in 2017. The CDR, which Envestnet | Yodlee recently became an accredited member of, set out to give consumers greater access to, and control over their data, improve their ability to compare and switch between products and services, and encourage competition between service providers.

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Article: Australia’s Open Banking revolution begins

Money, Open Governance

Australia’s Open Banking revolution begins

Leading Australian Open Banking provider Frollo,  leading technology provider to the lending industry, NextGen.Net, have published the first industry report on ‘The State of Open Banking in Australia’ since the Consumer Data Right (CDR) launched on July 2020.

The State of Open Banking in Australia report looks at what the financial sector thinks of the new banking regime, where it is headed and what the most immediate challenges and opportunities for businesses are. The report, based on interviews with key industry leaders and a survey of 161 finance and broking professionals across Australia’s financial sector, highlights that although there is still much to be done before the new Open Banking ecosystem lives up to its promise of being a game-changer for the industry.

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