The Turnbull Government will seek advice on implementing an open banking system regime in Australia, and examine how such a framework can help boost competition and innovation in financial services for the benefit of Australian customers and businesses.
Open Banking is about giving Australians greater access to their own banking data and has the potential to transform the way in which Australians interact with the banking system.
The Turnbull Government has commissioned an independent review to recommend the best approach to implement an Open Banking regime in Australia, with the report due by the end of 2017.
Greater consumer access to their own banking data and data on banking products will allow consumers to seek out products that better suit their circumstances, saving them money and allowing them to better achieve their financial goals. It will also create further opportunities for innovative business models to drive greater competition in banking and contribute to productivity growth.
The review will be ably led by Mr Scott Farrell. Mr Farrell is a Partner at King & Wood Mallesons and has more than 20 years’ experience in financial markets and financial systems law. Mr Farrell has given many years of service to the public and private sector in advising on, and guiding, regulatory and legal change in the financial sector. He has intimate knowledge of the financial technology (FinTech) sector and is a member of the Government’s FinTech Advisory Group.
Mr Farrell will be supported by a secretariat located within Treasury and will draw upon technical expertise from the private sector as required. The review will consult broadly with the banking, consumer advocacy and FinTech sectors and other interested parties in developing the report and recommendations.
The Review terms of reference are available here. An Issues Paper will shortly be made available for interested parties to provide input to the review.
Our moves to introduce an Open Banking regime in Australia are part of our comprehensive reforms to financial services, driven to empower consumers. The Turnbull Government is committed to opening the door to new banking entrants and new financial products and services.
This will mean more choice and cheaper and better options for consumers.