In July, the open banking regime officially commenced with the launch of the consumer data right (CDR), which enables consumers to securely direct their banking data to access bespoke financial products and services.
The CDR is currently limited to the sharing of data for deposit and transaction accounts, and credit and debit cards, with the sharing of data relating to home loans, personal loans and joint accounts commencing from 1 November 2020.
At this stage, the new regime is only open to major bank customers, with smaller authorised deposit-taking institutions (ADIs) to opt in over the coming months.
In preparation for its participation in the open banking regime, Xinja Bank has announced that it has partnered with SISS Data Services to help support its transition.
The partnership allows Xinja to onboard SISS Data services’ subscription-based product data API (application programming interface) to enable it to “quickly comply and innovate” without developing its own API.
“SISS is already well established in sharing customers’ banking data through pre-CDR channels and has mature controls for keeping data safe,” Xinja chief information officer Greg Steel said.
“However, what really attracted us was that Xinja and SISS, along with partners like private data sharing platform digi.me and ID Exchange, are well aligned in vision, looking beyond CDR to putting data fully into the hands of customers and helping them control access.
“SISS has the mission and the roadmap for putting the consumer in control of their own data,” he added.
SISS CEO Grant Augustin added: “We are delighted to have been selected by Xinja to help them comply quickly with CDR through our turn-key API solution for securely sharing product reference data.
“Our experience over 10 years in helping connect Australia’s major banks and more than 350,000 customers has enabled us to develop this simple, secure and effective API open banking solution.”
Mr Augustin said the partnership would also prepare Xinja for the second phase of the open banking regime, which commenced in the middle of next year.
“Success of Australia’s open banking environment depends on new and competitive marketplaces,” he said.
“The partnership between SISS and Xinja also enables data sharing with consumer-centric platforms such as digi.me, positioning Xinja well for phase 2 of open banking in July 2021.”
This follows Xinja’s partnership with cloud service provider Kong Inc to power the neobank’s microservices-driven mobile banking platform.
It will be introduced into Xinja’s infrastructure with the launch of its lending platform, which the neobank is currently developing.
[Related: Xinja partners with cloud services provider]