The State of Open Banking in Australia and Parpera's views on how it can be used to better serve businesses

Open Banking in Australia presents significant opportunities to enhance the way we collect, share, analyse, and present data to empower people to make better day-to-day decisions and achieve better financial outcomes.

However, as experienced in other markets with similar regimes, such as the UK, Open Banking adoption - and the ability to enable use cases that deliver real value - takes time and requires ongoing collaboration across government policy-makers, regulators, major industry participants, innovative market entrants, and (most importantly) the everyday people that it serves to benefit.

We joined other Australian industry leaders, in contributing to the report and sharing our expertise, including:

To learn more about Open Banking in Australia, check out Frollo’s inaugural report on the state of Open Banking in Australia.

You can read more on Parpera’s views on how Open Banking can be used to better serve business, on page 39 of the report :slight_smile:

When asked how Parpera will use the Consumer Data Right (CDR - Open Banking is a subset of this) to achieve our vision and better serve businesses, here’s how we responded:

How will you use CDR to achieve your vision?

Our purpose is to improve the economic prosperity of people, communities and societies, globally. To achieve this, we’re building an ecosystem of fair and transparent products and services to help
people set up, grow and manage their business in the new economy.

Existing business propositions tend to be quite siloed in their focus, with traditional banks primarily
focused on lending, and tax and accounting solutions focused on tax and regulatory reporting
requirements; there aren’t many existing tools to really support businesses in managing their
business holistically.

We interviewed and surveyed more than 500 businesses to better understand their needs and the challenges they face. We found that Australians specifically want a better solution that makes it easier and faster to receive money from their customers; maintain positive cash flow and manage expenses, tax and reporting obligations; and access support, products and services, personalised to their business and needs.

Initially, we’ll seek to leverage a CDR accredited provider, rather than be accredited ourselves, to access CDR.

We hope that within 24 months, other aspects of CDR – such as write access – will be available to us, which will enable deeper integration into member data to deliver better member outcomes.

In the long-term, what will be really interesting is the ability to aggregate disparate sources of financial and non-financial data to form a financial and non-financial data to form a hyper-personalised view of our member, but in the immediate term we see three key areas where
CDR will have an impact on what we are seeking to build:

  1. Better actionable insights – into income and expense cash flows and being able to present an aggregate view of transactional data across personal and business accounts. This will provide us with a true single view of a person’s data and enable us to empower them to make better day-to-day decisions;

  2. Tailored support and offers – we’re seeking to build a marketplace offering around our proposition and will use the insights gleaned from CDR to deliver a more tailored experience. CDR presents us with an opportunity to personalise the support we provide and the products and services we recommend based on their spending behaviours; and

  3. Funding – CDR presents the opportunity to aggregate data from disparate data sources to develop alternative funding decisioning models to provide people with access to funding, who previously may not have been eligible due to an inability to “see” a true view of their funding worthiness.

Congratulations to Frollo, Gareth Gumbley, Piet van den Boer and team on delivering a fantastic report that increases awareness, understanding, and visibility of Open Banking in Australia, the opportunities it presents, and the challenges we must collectively address to deliver its intended benefits.

We’re humbled by the opportunity to share our views and excited to be part of an ecosystem that’s driving change to benefit the people and businesses we seek to serve!