What's happening in Australian Open Banking ecosystem

"The ecosystem continues to grow.

Data recipients now constitute 64% of the total ecosystem, compared with 47% in December 2022. There are now 135 CDR Representatives, an increase of 165% from December 2022. Use cases have grown to 158, and while financial services leads the way, we are now seeing participants from a more diverse range of industries entering the ecosystem.

🔹 The ecosastem is beginning to mature.

The focus of the banks has shifted from compliance, and the big four are now all active as accredited data recipients (ADRs). Data holders have halved the average time taken to rectify implementation gaps (since December 2022).

The use of Outsourced Service Providers (OSPs) has increased by 79% over the past 12 months, highlighting the importance of specialist providers of CDR connectivity and other value added services.

🔹 Further work needs to be done to enable more use cases and boost consumer uptake.

The expansion of the CDR to the non-bank lending sector, the passage of legislation to introduce action initiation, and the details of proposed regulatory reforms to the CDR framework following several consultations held by Treasury in 2023 will all help to achieve these aims.

🔹 On the horizon

The second half of 2023 saw a number of consultations and reviews undertaken by Treasury to improve the CDR and to extend use cases beyond bank data sharing. 2024 will be an exciting time for the CDR as we expect the Government to progress key functional and sectoral expansions.

🔹 Non-bank lending

The Government is likely to soon make rules to implement non-bank lending as a new CDR sector, after designating it and consulting on draft rules last September. Mandatory data sharing is likely to come into effect by mid-2025, following a 12 month transition period.

Strategic assessments

In June 2023, the Government announced that planned sectoral expansions to telecommunications, insurance and superannuation sectors would be paused and reconsidered in ‘Strategic Assessments' in late 2024.

🔹 Screen scraping

In late 2023, the Government consulted on the recommendation of the Statutory Review of the CDR that screen scraping be banned where the CDR is a viable alternative. The outcomes of this consultation (and the consent review, operational enhancements) and next steps are expected in the coming months.

🔹 Action initiation

The Government has introduced legislation into Parliament to enable action initiation in the CDR. When this legislation progresses through Parliament, the Government will consult on rules and declarations for specific action types, such as payments and switching."

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