Banks hit major milestone through Data Action on their way to Open Banking compliance
Specialist software and services provider to the financial services industry Data Action (DA) today enabled more than a dozen Australian banks to go live and be able to publish Product Reference Data (PRD) as part of the Consumer Data Right (CDR) Open Banking compliance and regulations.
“This is an important step for these banks on the roadmap to deliver CDR legislation,” said Data Action Chief Executive Nicola Burgess. “They have utilised DA’s PRD solution to enable them to publish all the products they have through APIs.
“There are several milestones that need to be achieved as part of the ACCC’s directives to ensure all banks are compliant by milestone dates set for February and July next year and this is a very important step on that path.”
The four major banks went live with sharing PRD on accounts and mortgages on February 1 and for all financial products on July 1 with other financial services providers given a three-month extension from July 1 due to the impacts of COVID-19.
The extension applied to non-major ADIs, including non-major banks, building societies and credit unions – the core of Data Action’s clients.
Open Banking is one of the biggest shake-ups in banking in Australia and rolls out across the country’s banking sector over the next nine months.
Developed by the ACCC, it is part of Australia’s Consumer Data Right which aims to provide greater choice and control for Australians over how their data is used and disclosed. Banking is the first sector to which the CDR applies followed by the energy and communications sectors.
Open Banking allows consumers to instruct their bank to share their data with other banks, fintechs and technology services providers which means it will improve a consumer’s ability to compare and switch between products and services. It will also encourage increased competition between service providers, leading to better outcomes for customers. All banks need to be compliant by 1 July next year.
