The past twelve months has seen much change in Australasia’s open banking landscape. But the next year could prove even more interesting. With 2023 signaling the year of the rabbit, industry onlookers will be seeing whether the market flops or bounces back amidst the uncertain economic outlook and changing credit scene predicted. Clear and actionable financial data will be more important than ever, for both businesses and consumers as they look to navigate the obstacles that lie ahead. To avoid getting caught on the hop, what challenges can we expect to stay ahead of the game?
The new year will see a further maturing of Australia’s Consumer Data Right (CDR). With the open banking system facilitated by the CDR expanding across the broader finance industry, much focus is now on the next sector industry to see changes to their data regulation – energy1. Consumers will be able to share data about their energy usage and plan with competing advisors, opening up a new generation of competition in the sector. And the telecommunications industry will follow thereafter2.
There will also likely be an expansion of Action Initiation services, or ‘write’ abilities3. This goes beyond the data-sharing abilities of CDR – it’s a mechanism for businesses to act on behalf of consumers, with their consent. Actions include making payments, opening accounts, switching providers, and applying for services. This will unlock a whole new level of value for Australian consumers.
2023 will be a crucial year in New Zealand’s open banking journey. With the Government having announced in November that open banking is coming to the island nation4, we hope to see more detail on how it will be implemented. In the interim, the country’s CDR will apply to the banking sector only5. But as the year progresses, we would like to learn when the mechanism will be used in other industries, such as energy, electricity, and other core services. This is an exciting opportunity to drive innovation and competition in New Zealand.
The Kiwis will be going to the polls with the New Zealand General Election taking place later in the year. We are looking forward to seeing how party policy will support the growing FinTech scene in New Zealand, alongside supporting everyday Kiwis to take control of their financial well-being.
An exciting year ahead
At Envestnet®️ | Yodlee®️, we’re looking forward to supporting the growth of open banking across the region. This is an exciting time for the FinTech community and the everyday consumers who stand to benefit from increased control over their finances. Those businesses that think ahead and plan properly will be better placed to take advantage of open banking opportunities. Failure to do so may require pulling a rabbit out of a hat.