At Basiq, we’re providing you with all the tools to seamlessly acquire and use Open Banking data in a CDR compliant way. Learn how Open Banking can enable you to improve your product or service to create better customer experiences.
Recognised by the ACCC as an accredited data recipient
How would it impact your business if it couldn’t connect to the major banks? Recent events have reduced the availability of access to banking data via web connectors, putting at risk businesses relying on this data to service their customers. The best way to future-proof data access is via Open Banking. Basiq has launched a campaign to raise awareness of the changes and help businesses make the move.
Read more about the changes and how to future-proof your business via Open Banking below.
Open Banking is an innovative and legislated financial services practice which gives consumers the option of sharing their personal information and financial data with accredited third parties, through the use of application programming interfaces (APIs).
It will change the way consumers and businesses interact with their finances, and increase efficiency of data sharing between financial institutions.
In order to use Open Banking under the Consumer Data Right, organisations can either be fully accredited by the ACCC or choose a pathway for participation in the CDR from a range of models.
Discover the access models currently available, along with crucial information to consider when choose a participation model including the pros and cons of each.
Answers to common Open Banking questions
The Consumer Data Right (CDR) is a data policy initiative of the Australian Government, giving consumers greater control over their personal data and the right to securely share their data with trusted third-party organisations. The CDR is currently active in banking and energy, and planned to be rolled out across other sectors such as telecommunications and superannuation at a later time.
In financial services, customer and transaction data was traditionally held by organisations, such as banks. Under the CDR, this data can be shared with third-party providers to drive competition in the market and enable customers to better products and services.
Currently, any organisation wishing to receive Open Banking data must be accredited as an Accredited Data Recipient (ADR) by the ACCC – more info here, or gain access via one of the CDR Access models.
The ACCC officially defines the various CDR access models as the following:
Sponsored Affiliate – Businesses who become a Sponsored Affiliate have accredited access to data via an ADR acting as a Sponsor. This model allows Sponsored Affiliates some of the same privileges and access to CDR data as an ADR, but at a lower cost and in less time.
Principal and Representative – The Principal and Representative Model is an accelerated way businesses can access Open Banking data. There is no official accreditation needed, instead a business is able to access data as a Representative via an ADR that acts as a Principal.
Trusted Advisor – This model allows consumer consented data to be shared with ‘trusted advisors’, including financial advisers, mortgage brokers, accountants, tax agents and/or lawyers.
CDR Insights – CDR rules allow consumers to share insights with individuals or organisations outside the CDR ecosystem for specific low-risk purposes, including verifying a consumer’s identity, account balance, or details of transactions to or from specified accounts.
Open Banking and web connectors are two different methods of obtaining financial data – both methods use APIs to extract the data.
Web connectors (often referred to as Digital Data Capture or Screen Scraping), has evolved over the years and from a security standpoint there is little difference between using APIs as opposed to direct data capture methods. Both encrypt traffic over a HTTPS connection and both require an exchange of information for a token to complete the authentication process (login/pass vs API key) – meaning they are almost identical in nature.
The main advantage of using Open Banking APIs is that the data received is more structured, thus reducing time-to-development (especially when retrieving data from multiple financial institutions). It also provides prescribed guidance on handling of data and reduces the potential of misinterpretation.
An OSP is a person engaged by an accredited person (the principal) under a CDR outsourcing arrangement. The arrangement covers the collection of CDR data from a CDR participant on behalf of the principal or the provision of goods and services to the principal using CDR data that the OSP collected on the principal’s behalf. An OSP is not required to be accredited but must comply with the CDR outsourcing arrangement.
Get in touch with one of our team members or create an account
