The Australian government will start implementing an open banking regime in a phased manner from July 2019.
The government announced the introduction of open banking regime in the country in the 2017-2018 budget and commissioned independent review on open banking to recommend the best approach for implementation. The move would give banking customers greater access to, and control over, the data their banks hold on them, the government said.
Under the plan, open banking will be phased in with the aim that all major banks will make data available on credit and debit card, deposit and transaction accounts by July 1, 2019, and mortgages by Feb. 1, 2020. Data on all products recommended by the review will be available by July 1, 2020, the government said.
All remaining banks will be required to implement the regime with a 12-month delay on timelines compared to the major banks. The Australian Competition and Consumer Commission will be empowered to adjust timeframes if necessary.
Implementation of an open banking regime would also increase competition in the banking sector and offer customers better choices by allowing their banking data to be shared with trusted third-party providers, thus giving them the ability to negotiate better deals.