Open Banking could boost Australia by AUD $10 billion annually

FinTech Australia has released the sixth edition of its Australian Open Banking Ecosystem Map and Report, outlining the current status and future vision for the Consumer Data Right (CDR), alongside a set of proposed reforms to maximise its potential benefits.

The latest report, supported by Mastercard and Open Finance ANZ, coincides with Australia surpassing four billion consumer data requests, marking a significant step in the national rollout of Open Banking. Citing figures from the recent Productivity Commission report, FinTech Australia estimates that easier consumer access and sharing of personal data could result in as much as AUD $10 billion in annual productivity gains for the economy.

Looking ahead, FinTech Australia has set a target for 2030: to see 5.4 million consumers and businesses-approximately one in four eligible Australians-actively using CDR-enabled products and services, underlining the organisation's commitment to broadening the reach and impact of Open Banking.

"This report is both a reflection of how far we've come and, crucially, a blueprint for how far we can go," Rehan D'Almeida, CEO of FinTech Australia said. "Open banking boosts productivity, reduces consumer costs, and underpins a safer, more competitive digital economy. With the right policy settings and support, it can deliver immense value."

The report details a range of key findings reflecting a growing adoption of CDR services. In the second half of 2024, it is reported that 530,000 Australians were actively using Open Banking products and services, with projections estimating that 3-4% of those eligible may adopt CDR-enabled solutions by the end of 2025.

The growth in consumer engagement is also evidenced by transaction volumes, with 582 million data requests recorded in the latter half of 2024. Additionally, there are now 190 registered software products utilising the CDR framework across sectors such as healthcare, energy, and public services. The report also notes the development of government and industry pilot initiatives, including Treasury's rental data project, which highlight the expanding cross-sector potential of Open Banking.

Sector applications

The maturing landscape, the report states, shows CDR transitioning beyond the banking sector into practical applications for a variety of industries. Several real-world use cases are highlighted:

Gather Wealth, a personal finance platform, enables users to consolidate their banking, property, and investment data for a comprehensive, real-time financial overview. The platform is also planning to introduce features for users to perform financial actions-such as switching products or automating savings-within a unified interface.

SISS Data Services provides tools for accountants and small and medium-sized enterprises (SMEs), easing the process of multi-user banking and fulfilling nominated representative requirements. Its CDR ACSISS product allows secure access to business financial data without extensive technical demands, supporting business owners and advisors.

NextGen incorporates CDR into its mortgage application system ApplyOnline, supplying tamper-proof financial data directly to lenders. This approach eliminates the need for supporting documentation, shortens approval times, enhances loan accuracy, and bolsters trust and compliance among consumers.

EnergyFlex utilises CDR to create household energy profiles via a mobile application. Consumers receive a personalised EnergyFlex rating, industry benchmarks, and recommendations tailored to reducing costs and emissions, without needing additional devices or specialist knowledge.

Policy and reform

In the view of FinTech Australia and report contributors, unlocking the greater benefits of Open Banking will require further action. To this end, the report sets out several priority recommendations:

These include a phased transition away from screen scraping in banking, broader government adoption of Open Banking to demonstrate leadership and foster trust, and modifications to the nominated representative framework to increase SME involvement, particularly in accounting.

The report also advocates for the simplification of consumer consent pathways through a new consumer disclosure consent model aimed at reducing operational complexity and facilitating participation. Continued funding and governance reform are seen as critical to supporting the long-term expansion of CDR.

Brenton Charnley, Vice President and Head of Open Finance, Australasia at Mastercard, said: "The CDR is a critical part of Australia's digital infrastructure, giving consumers a safe and secure way to share their data and access better products and services. It has taken significant effort to get to this point, and Australia's open banking regime is now world leading. With uptake growing, the right policy settings to remove barriers to participation will allow the CDR to drive productivity, ease cost-of-living pressures, fuel innovation and build greater trust in the digital economy."

The call for reform follows the Federal Government's 2024 "reset" of the CDR program, which aimed at lowering costs, expanding functionality, and extending the framework to non-bank lenders. These changes reflect the continuing evolution of policy and regulatory approaches to foster digital transformation and consumer empowerment in Australia's financial system.