The competition watchdog has announced that SISS Data Services has become accredited under the Consumer Data Right (CDR), better known as Open Banking.
To date, the Australian Competition and Consumer Commission has accredited just 14 data recipients under the new government-backed data-sharing framework.
Earlier this week, Finder said it become the first comparison platform to become an accredited data recipient following approval from the anti-trust regulator.
SISS is Australia’s largest independent provider of direct bank data through direct connections to leading Australian banks, including Commonwealth Bank, Westpac, National Australia Bank, and ANZ.
SISS chief executive, Grant Augustin, said accreditation gives Open Banking a much-needed boost since it provides fintechs with a fast and cost-effective path to access consumer data.
“Over the last 10 years the ACSISS Platform has been trusted by over half a million Australians to securely access and share consented, bank-approved, financial data,” said SISS chief executive, Grant Augustin.
“The fintech community has been vocal about the cost and time it takes to comply with the CDR accreditation requirements, with some fintechs claiming the cost to build and comply with CDR could reach $500,000 plus ongoing maintenance of $50,000 per annum.
Augustin went on to say that with only 14 Accredited Data Recipients (ADRs) - of which fewer than half are active - there is concern the CDR may not be widely adopted as first hoped.
“We understand what firms are saying about the build and compliance cost of open banking, we saw the same cost and compliance issues with direct data feeds - or closed banking - when it started, and we worked with banks and fintechs to find a way forward,” he added.
Augustin believes the success of Open Banking will in part, depend on platforms like ACSISS lowering the cost and expense of compliance, and giving fintechs options on how they access data.
“ACSISS enables an ADR to be CDR ready in minutes, not months,” he said. “Fintechs simply create an account with us, configure their CDR consent, and publish it. And with a full-featured, production account starting at $500 per month, it is within reach of all.”
“We have taken a three-to-six-month CDR build for fintechs and turned it into a one-day exercise.”