Welcome to Open Banking – where you take the lead in managing your financial data. No more sifting through paper statements or mystery transactions from years past. Open Banking is designed to save you time, reduce stress, and streamline your financial life.
What is Open Banking?
Open Banking enables you to securely share your data with banks, budgeting apps, or financial services of your choice, all with your permission. Using secure APIs, Open Banking allows instant data sharing, no more tracking down PDF statements or documents.
Different ways Open Banking is being used include things like sharing your lending portfolio with other banks to receive other offers such as lower rates or better features. Sharing your credit record and banking details in a few clicks to reduce the time spent assessing a loan application. Or providing full access to your mortgage broker to automatically track your rate each month to ensure you’ve always got the most competitive option.
In short, Open Banking allows you greater access to your online financial footprint and puts you in control.
The Benefits of Open Banking
- Control Over Your Data – True Ownership
– You’re in control. Share the information you want, only when you want, and with the trusted providers you choose. Be mindful that you know who you are sharing your information with and for how long, security remains an important element. - All Your Accounts in One Place
– Say goodbye to juggling multiple apps and bank accounts. Open Banking lets you view all your accounts in one dashboard, giving you a comprehensive perspective on your finances. A platform that we recommend is Frollo. This is fantastic as a means of tracking your budget across multiple accounts, and you can include things like share balances and property in your portfolio too. - Fast-Tracked Access to Financial Products
– Looking for a mortgage or loan? With Open Banking, you can give lenders access to the relevant data instantly, making the application process faster and easier. Open Banking allows for things like the creation of a financial passport, a single portal where all of your lending, spending and debt can sit for ease of communication for your next loan. - Encouraging Innovation in Financial Services
– Open Banking allows financial institutions to deliver better, more tailored services. Tools such as interest rate tracking, integration of different aspects of the loan application process and ongoing monitoring and comparison of lending products. One example of this is credit reporting companies. As your credit score adapts and changes, you can opt to receive offers for various financial products that are tailored to your credit score. A better score = better interest rates in most cases. - Enhanced Security Measures
– Your data security is paramount. Open Banking is backed by stringent privacy standards, with only accredited providers under the Consumer Data Right (CDR) allowed access to your information. Your data remains safe, secure, and under your control. Lenders and businesses with access to this data have extensive security requirements to meet in order to receive CDR accreditation.
Open Banking has the potential to transform your financial experience, making it easier and more convenient for you to manage your money whilst keeping your data safe. By putting you in control and encouraging better financial services, Open Banking paves the way for a more transparent and flexible relationship with your finances. With these benefits in mind, you can take full advantage of Open Banking by following some key tips to get started.
Tips to Get Started with Open Banking
- Know Your Rights: Always ensure you understand who you’re sharing your data with, what and why you are sharing and how long that access remains in place. It’s common for authorisation to be provided as a one-off, but you can also approve this for longer periods such as 12 months.
- Choose Accredited Providers: Share data only with accredited, trustworthy providers to keep your information secure. If you’re unsure, you can ask to see their CDR and security documentation. You can check to see whether a business is an accredited CDR provider here: https://www.cdr.gov.au/find-a-provider
- Review Permissions Regularly: Periodically check who has access to your data, as your financial circumstances and needs may change over time.
How Entourage Can Help You Make the Most of Open Banking
At Entourage, we’re committed to helping clients gain a financial advantage with tools that work in their best interests. Open Banking is one of those tools, giving you more control over your data and, ultimately, your finances.