Adatree becomes 1st open banking principal

The access model is a recent amendment to the CDR legislation, allowing unrestricted data recipients, such as Adatree, to act as principal to other companies wanting access to open banking data.

Adatree’s first CDR representative under the principal access model is mortgage repricing and refinancing platform provider Sherlok.

Under the partnership, Sherlok, which offers an automated repricing and refinancing tool for mortgage brokers that monitors around 35,000 home loans, will receive data in real-time.

Sherlok will also skip the time, cost and effort required to access CDR data if it had sought its own data recipient accreditation.

Instead, Adatree is essentially sponsoring Sherlok’s access to the CDR, shouldering the costs and compliance obligations – and allowing the refinancing tool provider to access open banking data within a matter of weeks.

Sherlok chief executive and founder Adam Grocke told Mortgage Business sister brand The Adviser the company had considered the data recipient route initially, 12 months ago, when it saw the potential for mortgage brokers to use customer data under the CDR scheme.

“What we saw was that the legislation was constantly changing. So we would need to have potentially a consultant or an internal team that would be managing constantly our requirements as an accredited data recipient,” he explained.

“The cost and process to get that data recipient status was actually going to be anywhere between $150,000 to $300,000 in costs and it was going to take between six to 12 months to do that.”

Jill Berry, CEO and co-founder of Adatree echoed Mr Grocke, adding partnering with principals will make it easier for businesses to overcome high entry to the CDR.

“The process to participate in the Consumer Data Right is very lengthy and complex, with security and regulation at the heart of it,” Ms Berry said.

“Hundreds of companies are registered as interested in becoming Data Recipients, but are yet to start the process.”

Mr Grocke also told The Adviser that tapping into open banking data will allow the tool to offer brokers live insights across product rates and customers’ data, which could improve customer outcomes and retention.

“It means that we can, 24/7, monitor their interest rate, we can look for patterns within that consumer’s data to better predict if they’re going to leave,” Mr Grocke explained.

The access to open banking data will underpin a new single-click refinancing offering from Sherlok, which is expected to launch in the second half of the year. Sherlok has aimed to squeeze the refinancing time frame from a matter of weeks to minutes, through the use of data, analytics and artificial intelligence.

Senator Jane Hume, Minister for Superannuation, Financial Services and the Digital Economy, congratulated Adatree and Sherlok.

“Adoption of the Consumer Data Right is forging ahead, with industry taking to the new Principal access model just weeks after it was formalised,” she said.

“Greater adoption of the CDR means better, cheaper and more bespoke products and services for consumers and businesses alike.”

[Related: E-signature reform key to property market: Dye & Durham]