The Australian banking industry has developed what it calls a “recipe for a successful open banking regime” to radically change the customer banking experience.
Australian Bankers’ Association’s announcement comes after Macquarie Bank revealed that it is currently piloting its own open banking platform.
ABA chief executive Anna Bligh said that open banking puts power into the hands of customers, giving them unprecedented access to their own data.
The CEO said: “At the click of a button, Australians will be able to directly share their transaction data with other banks or financial services. Customers can use their data to do product comparisons and get the best deal.
“Customers will also be able to feed their data into personal financial management tools to help them manage their money.
“Australia’s banks will fully participate in the open banking regime to provide more innovative and personalised products and services to customers.”
The banking industry’s submission to the Farrell inquiry, lodged on Friday (22 September), will put forward an industry-wide model to implement open banking.
“One that will give customers confidence [that] their data is being shared securely and with their informed consent,” Ms Bligh said.
This will include a phased approach by banks to sharing data over the next two years, subject to the development of enabling legislation.
The ABA has also proposed an industry working group as a vehicle to get the new regime moving.
“Australia’s banks have learned from the lessons overseas and, as the first cab off the rank for industry data sharing, will pave the way for others,” Ms Bligh said.
“Eventually, data sharing will bring benefits to Australians not only in banking but across the economy in industries like telecommunications and energy.”
[Related: Macquarie's move could be very disruptive]