Founders Anthony Thomson, former ANZ Japan CEO Robert Bell and ex-Cuscal CIO Brian Parker are gearing up to launch 86 400 (signifying the number of seconds in a day), after signing a deal with Berlin-based Open Bank Project (OBP) that will see the banking platform powered by OBP’s API.
86 400, which is in the process of obtaining a full banking licence from the Australian Prudential Regulation Authority, will reportedly use the API to “standardise and harmonise its API design, enabling access to a global network of over 10,000 fintech developers”.
“Having a strong and lively fintech ecosystem is core to 86 400’s strategy. By leveraging Open Bank Project, we have a unique opportunity to strengthen this ecosystem and tap into a global reservoir of talent and innovative ideas that we can bring to the Australian market,” 86 400 co-founder and CIO Mr Parker said.
Open Bank Project CEO Simon Redfern also commented on the announcement, saying: “We are thrilled that 86 400 shares our vision of an open banking future. APIs and fintech ecosystems are a tremendous accelerator for product development and can bring so much to bank customers.
“It is great to see a challenger bank committing to this path.”
The partnership announcement comes as Australia prepares for the open banking regime, which will introduce a framework that supports economy-wide open data, starting with banking from 1 July 2019.
The government’s proposed open banking implementation plan involves lender participation in the mandatory comprehensive credit reporting regime, starting with the big four banks, followed by the non-majors, whose deadlines are 12 months after the majors.
Under the National Consumer Credit Protection Amendment (Mandatory Comprehensive Credit Reporting) Bill 2018, which is yet to be legislated, ANZ Bank, Commonwealth Bank, National Australia Bank and Westpac are required to share credit card, debit card, deposit and transaction account data via a reciprocal data exchange system established by ARCA in consultation with the industry. Data on mortgages and personal loans are to be shared in the coming years.
Another key component of the open banking regime is the Consumer Data Right, set to come into effect on 1 July 2019. The draft Treasury Laws Amendment (Consumer Data Right) Bill 2018 states that individual and business consumers will be able to access their own data or direct custodians to share their data with accredited entities — such as banks, telcos, energy companies and comparison service providers — that have “satisfactory security and privacy safeguards” in place.
The 86 400-Open Bank Project partnership was also announced as SWIFT’s Sibos conference kicked off in Sydney this week, with this year’s theme being “enabling the digital economy” and covering topics such as the role of emergent technologies in driving service innovation and business model renewal, new paradigms for tackling financial crime, cyber security risks and adapting to evolving regulatory priorities.