Open Banking Use Cases

Open Banking and Its Opportunities

2022 has been another important year for open banking in our region. The development and usage of open banking-powered products and services in Australia have continued to increase, while the New Zealand Government has announced that open banking is coming to the island nation. The FinTech community has played a major role in enabling open banking across the world. We’re here to support Australia as it continues and delves deeper into its open banking journey. With extensive experience and a portfolio of ready-to-go solutions, Envestnet® | Yodlee® is already doing so. Here’s how:

  1. Helping reduce home loan applications from weeks to minutes1
    The mortgage industry isn’t known for moving quickly. Manual processes and extensive human assessment lead to unnecessarily slow application times. But non-bank lender, Tic:Toc, through digitising the lending experience from end-to-end, offers customers a home loan in under an hour.

    Using Yodlee’s Australian Accredited Data Recipient status, Tic:Toc is able to instantly and securely connect to its customer’s bank account. Tic:Toc then applies its AI-driven lending and data enrichment technology, alongside Yodlee’s data aggregation technology, to generate a customer’s financial commitments in real-time, empowering assessors and users to make more accurate and efficient credit decisions.
  2. Turning spare change into lifetime savings2 
    Investing hasn’t always been for everyone. A lack of capital and knowledge has meant it’s previously been restricted to the elite. But mobile investment platform, Raiz, alongside a slew of other start-ups, has changed the game. In early 2016, Raiz pioneered automatic micro-investing for Australians by enabling consumers to invest spare change into a diversified portfolio.

    Using Yodlee’s financial data aggregation capabilities and FastLink technology, Raiz rounds up each purchase to the next dollar and invests the leftover cents in investment funds. The consumer-permissioned data and enrichment that Yodlee provides have triggered further product developments, such as My Finances, which tracks consumers’ spending habits and offers important insights.
  3. Reimagining the checkout experience3
    Consumers and merchants have come to accept the expensive tollbooth sitting in the middle of payments: card networks. But digital payments platform, GrailPay has developed a solution to bypass the card networks and enable shoppers to pay directly from their bank accounts. GrailPay’s implementation saves merchants over 75% on payment processing costs while also providing a more seamless onboarding experience for consumers.

    To do so, GailPay needed a quick and secure way to link to consumers’ bank accounts and instantly verify their identity. They partnered with Yodlee after comparing financial data aggregators, because of the quality of Yodlee’s service and attention to the customer.