The roll out the open banking under the Consumer Data Right (CDR) is set to have a major boost 12 months after its launch with 20 Australian banks and credit unions set to join in a partnership with data fintech Adatree.
July 1 marks the first anniversary of CDR and a year on, there are now 12 data holders accredited for CDR and 12 data recipients, including Adatree.
The fintech, founded by former Tyro and Volt Bank executives, Jill Berry and Shane Doolan, offers a turnkey solution for any accredited data recipients to access CDR through a simple API.
The financial consortium, which includes BankVic, Police Credit Union and Hume Bank has engaged by Adatree to ensure its compliance with the open banking regime.
Adatree CEO Jill Berry says the mutuals will prepare to share data using the Adatree Industry Sandbox,
which is the developer testing environment for the Data Recipient Platform.
“This next maturation of the Consumer Data Right regime is vital as it takes data sharing beyond the
major banks to those banks and mutuals that service Australian communities and regional areas and
begins to open the doors to increased competition and innovation,” she said.
“There are significant challenges and technological hurdles in becoming accredited and Adatree is proud to partner with this consortium to ensure they are able to share consumer data in a compliant and consistent way.”
Trevor McNamara, head of technology and transformation at QBank, a member-owned financial institution for Queensland Police and Emergency Services, said they’re keen to compete in open banking.
“The knowledge and platform provided by Adatree will assist the Bank in ensuring the full functionality of open banking is available to our members while maintaining a high degree of security and privacy
controls to protect our members personal information,” he said.
BankVic chief information officer Scott Wall said the CDR legislation offers major benefits to Australian consumers, but also has significant technology challenges.
“As CDR is a new initiative there are few suppliers in the market and developing our own testing sandbox would have been expensive and time consuming, introducing considerable risk to our project,” he said.
“Adatree’s white-label Data Recipient solution proved to be a great platform to support our Data Holder testing as it provides a Register and full ADR capabilities to perform real world testing.”
The others involved in the consortium are: Bank of Us, The Mac Credit Union, Community First Credit Union, Transport Mutual Credit Union, LCU (Laboratories Credit Union), Family First Credit Union, CMCU (Central Murray Credit Union), South West Credit Union, Geelong Bank, CWCU (Central West Credit Union), Unity Bank Orange Credit Union, and WAW Credit Union.
From November, access to open banking will be expanded next year to include major bank business customers, who will be able to can share their data with accredited data recipients when shopping around for better services.
Following open banking, CDR is set to roll out telecommunications and energy.