By Jim Bulling and Edwin Tan
The Australian Government has today released a report into Open Banking in Australia that sets out recommendations in relation to the method of implementation and proposed timelines. Some key points are:
- the Australian Competition and Consumer Commission (ACCC) should be primarily responsible for overseeing standards-setting and accreditation, assisted by the Office of the Australian Information Commissioner for privacy issues;
- the obligation to share data should apply to all Australian Deposit-taking Institutions (ADIs) as well as reciprocally for other participating entities;
- all ADIs should be automatically accredited to receive data. A risk-based accreditation standard should be used for non-ADIs (this would include most FinTech startups, for example);
- the use of Application Programming Interfaces to facilitate data sharing; and
- mandatory implementation of “read-only” access should be approximately 12 months from a final Government decision to implement Open Banking for the big 4 banks, with a further 12 months transitory period for other banks.