Open banking to usher new wave of products

The open banking regime could enable banks to create data-driven products and services instead of the riskier mortgage offering, according to a mutual bank.

Scott Wall, chief information officer of Melbourne-headquartered mutual bank BankVic, told the IQPC’s Open Banking Virtual Event that there is an opportunity for banks to capitalise on the sharing of consumer data under the new open banking regime by building products and services based on the data they collect from their consumers about their spending and savings habits.

The Australian banking sector recently welcomed the official launch of the open banking regime in July. The regime officially began with the launch of the consumer data right (CDR), which enables consumers to securely share 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. From 1 November 2020, they will also be able to share data relating to home loans, personal loans, and joint accounts.

Speaking at the webinar, which explored the consumer data right and open banking in Australia and around the world, Mr Wall posited that creating data-driven products and services could carry lower risk than lending products.

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Source: Open banking to usher new wave of products – Mortgage Business