Open Banking just became more open for business

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If you’ve been sitting on the sidelines waiting for Open Banking in Australia to become more accessible for businesses, your wait is officially over. 

Highly anticipated amendments to the Consumer Data Right (CDR) Rules were announced on Friday 21 July that remove restrictions on who businesses can share their data with, and extend the maximum period of data sharing. The changes will come into effect on 1 Dec 2023.

 

What does this mean for you?

 

For service providers:

If you provide services requiring your business customers to share their data, you can now leverage Open Banking without the need for accreditation.

You can also use business customer data for a maximum period of 7 years (previously 12 months), making Open Banking much more operationally viable for you and your customers.

For example, consider a specialised accounting platform catering to the manufacturing industry. Previously, the accreditation requirements have presented significant barriers to entry for Open Banking, making it challenging for customers to connect their financial data without manual processing. However, with these rule changes, the accounting platform can seamlessly integrate with a trusted partner like Skript to automate bank feeds directly from banks. And the best part is that there is no accreditation involved.

 

For businesses:

If you’re a business and are currently relying on manual processes to reconcile your financial data, or you’ve given away your internet banking password to a company to automatically “scrape” your financial data, there is now a better way. Open Banking is easy, secure and is no longer limited to a few accredited companies.

The major benefit to Australian businesses will be greater adoption of Open Banking across a diverse range of service providers, ultimately leading to more competitive and secure solutions in the market.

 

The key changes

The amendments enable non-individuals and ABN holders to securely share their data via Open Banking with any party of their choice, regardless of accreditation status. 

Previously, data could only be shared with certain parties:

  1. Accredited Data Recipients;
  2. CDR Representatives or Affiliates, who are effectively assessed and sponsored by Accredited Data Recipients; or
  3. Trusted Advisers (mortgage brokers, accountants, financial advisers, tax agents and lawyers).

Businesses can also choose for their data to be held for up to 7 years, where this was previously just 12 months.

These changes come largely in recognition that businesses are already doing these things, but through less secure and less efficient means. 

For clarity, these changes do not apply to individuals. Their data will still only be accessible to Accredited Data Recipients, CDR Representatives and Trusted Advisers. Their maximum data sharing period will also remain at 12 months.

 

Partner with Skript to embrace Open Banking

Open Banking is well and truly here, and it’s open for business. 

Skript is a business banking data specialist, and we can’t wait to help businesses unleash the power of this next phase of Open Banking. 

Reach out if you’d like to have a chat!

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