Industry pioneers team up to bring open banking to life

  • By Christine St Anne

The first visual concepts that bring the Open Banking use cases to life has been revealed under a partnership with consumer data right technology expert Adatree and innovation and design agency We Discover.

Adatree, a startup founded by former Tyro and Volt executives, has been a technical partner to one of the 10 companies chosen to be data recipients in Australia and as a result has a tested platform ready to launch to market.

We Discover has garnered a track record helping companies such as Qantas, Vodafone, and Zip Co research and design new technology products.

“Within months we’ll see financial processes that used to take consumers days give way to new innovative solutions that require a single click,” CEO and co-founder of We Discover Scott Forrester said.

“This partnership with Adatree is a fundamental step towards exploring and rolling out these new services,” Forrester added.

The concepts point to a future where consumers will be able to simply switch services – such as telco and electricity providers -- with a single click. Other services include a detailed breakdown of monthly spend features.

According to Adatree co-founder and CEO Jill Berry, the concepts mirror the future capabilities of the Adatree platform. “We have been building the [Adatree] data platform for a year and a half, which enables us to bring other companies' data-driven propositions to life through the CDR” Berry said.

Forrester added: “This won’t all be in-house innovation from our major financial institutions. They will need to partner and work with disruptors to achieve the speed to market they need to keep up with the pace of change.”

Indeed, the “secret sauce” for Forrester in the partnership is a new thinking around how this new technology can drive use cases that resonate and appeal to consumers.

In fact, RFi Group research highlights that consumers are increasingly comfortable with sharing their data in return for benefits such as new product offers, faster applications and more personalised services.

RFi Group data found that the use cases that most appeal to consumers include personalized advice and recommendations followed by account aggregation and fast-tracked credit product applications.

Practical use cases will be key to driving awareness and uptake of open banking, according to a recent discussion from RFi Group’s Australian Banking and Innovation Summit.

Berry also recognizes that it is crucial that open banking delivers on those practical benefits.

“We have the visualization and design to bring all these new cases to life,” Berry said.

“Consumers won’t necessarily get excited about sharing data, but they will get excited about services that will make their life easier, such as making it easier to switch products or almost instantaneously apply for products.”

While the focus is on the major banks, who are the first to share data under the CDR, the pair expect that comparison sites and lenders will be the first to integrate CDR capabilities into their services.

“There’s a compelling proposition here for these sites to expand on their offering and take consumers personal financial data into consideration when recommending services,” Forrester said.

“Rather than giving consumers a list of services with generic benefits, they will be able to tailor their recommendations directly to each consumer and explain in real terms how switching helps them. This can be done at the request of the customer, but also proactively if they decide to give the company access to their data.”

Berry added: “Another sizable opportunity exists for challenger banks, fintechs and new financial services entrants to become a focal point for all financial products a customer holds.”

Another opportunity is around the increasingly multi-banked customer. RFi Group research shows that consumers now have products, particularly savings and transaction accounts across many providers.

“We all know customers have relationships with multiple institutions,” Berry adds.

“The CDR allows organisations to easily aggregate up to 7 years worth of account data into one place.

“This allows clever companies to build compelling propositions that help customers have complete visibility of their finances and improve their overall financial wellbeing.”