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After much anticipation, the Consumer Data Right Legislation is finally passed! Just after a month since the original open banking deadline for the Big 4, the real race begins. It's time for banks to lay out their open banking playbooks and start implementing open APIs.
A Quick Overview of the Timelines
Even before you consider the technical aspects of open banking, you should understand the regulation. Our article answers some common questions around open banking in Australia. A summary of the approaching deadlines is included below:
- February 2020: Credit and debit card, mortgage, deposit, and transaction data by the Big 4 banks
- July 2020: Account data for all banks aside of the Big 4
- February 2021 for mortgage data: Account data for all banks aside of the Big 4
- July 2021 for all other products
How to Get Started
With less than a year to go, banks have a lot of prep work to do. Here are a few simple steps to kick start your technology implementation for open banking:
Create open banking evangelists: Even if it is just 3 people, it is important that there is a part of your organization that lives and breathes open banking. That way, they align every aspect of the business - customer value, profitability, and even vision towards a pro open banking model.
Budget for efficiency: Open banking doesn’t have to cut through a hole in your annual budget. An efficient open banking implementation is one that will not cost you a ton of money. And in order to budget for efficiency, always think about what you can re-use and re-purpose. As banks, most of the technology required for open banking should already be within reach. What matters is how you adapt it to fit open banking specific needs. Our article has more details.
Evaluate existing technology: Open banking does not require you to reinvent the wheel. You would already have banking APIs and data security mechanisms in place, and most of it can be modernized to fit open banking requirements. Our white paper covers this in detail. You just need to identify the gaps. And pay close attention to security. Features like customer authentication and consent management are crucial to the success of open banking.
Fill out the missing pieces: This is where you get creative. Once you know what is missing, always look at working with technology that is easy to integrate with current systems (so it doesn't take much time), meets open banking specific customizations (so your teams don't have to spend cycles implementing them), and finally invest in technology that gives you the flexibility to scale as you go. That way, you lower the risk in the technology investments that you make.
Test like your life depends on it: Once your open API environment is set up, make sure to test all of the functionalities are meeting requirements. When testing, think like a data recipient and envision the experience you want them to have. Remember, the better your API portal, the more data recipients you attract and the better you serve your customers.
We are excited to participate in the open banking journey in Australia and we are keen to share our experiences with banks like Société Générale with you. If you are just starting your open banking implementation or have made progress but need more technical or regulatory guidance, do get in touch with us.
Everything you need to know about WSO2 Open Banking is here.