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Milestones

Jul 2020

Oct 2020

Nov 2020

Feb 2021

Jul 2021

Feb 2022

Consumer Data Right launches. Major banks make product data on all products, and consumer data on standard (Phase 1) products (credit cards, debit cards, deposit and transaction accounts), publicly available.

2020

All non-major ADIs make product data on their standard products publicly available.

Major banks make consumer data on mortgages and personal loans (Phase 2) publicly available.

Major banks make consumer data on all their products (Phase 3) publicly available. All major non-ADIs make their product data for mortgages and personal loans publicly available. 

A list of data holders is made available. All non-major ADIs make product data on all their products, and consumer data on Phase 1 and 2 products, publicly available.

Trusted Adviser access model is made available. All non-major ADIs make consumer data on all their products publicly available.

Better data, more business with open banking

Brokers looking for ways to level up their business are getting a significant helping hand as the open banking scheme continues to roll out. The Consumer Data Right framework now covers over 98% of consumer household deposits, and its reliability in terms of data holder response times is nearing 100%. All indicators show that open banking is progressing well in laying the foundations to serve consumers and the industry, says Renee Blethyn, head of broker partnerships at industry technology partner NextGen. With brokers having become recognised as Trusted Advisers within the scheme from February of this year, Blethyn says an enormous opportunity lies in front of them. “It puts brokers right by the side of consumers when it comes to guiding them through the choices they have [of] financial services,” she says.

The key advantage for brokers is the range and quality of a customer’s financial information they will have available at their fingertips. “The biggest things we hear about are productivity efficiencies and how to create a better experience for clients and deliver a faster approval time,” says Blethyn. “Using CDR data is going to massively help that.” Getting accurate and robust data about a client from the get-go makes a huge difference to brokers going through the loan application process. Brokers can check performance and availability for data holders via the CDR government website. In July 2021 the number of live data holders was 12, but this number grew to 114 a year later. “It’s going to provide a very speedy and secure way for consumers to access their information and share it with a mortgage broker,” says Blethyn. Without open banking, collecting some of the necessary components is a time-consuming chore. “What it's actually going to do is give brokers much more visibility of a lot more information that they don't currently have readily available to them without sometimes going through quite a painful process.” One game changer is the provision of information on income. “The amount of data points and insights that are provided through open banking really empowers the consumer and helps the broker provide the best possible service, giving them a greater range of information as a reference point right from the outset,” she says. Clearly, lenders will also be able to make faster decisions if CDR data is used. “That obviously delivers a great outcome for brokers and customers if we can get faster approvals, freeing up time for brokers to be able to either offer other services to their customers or just to be able to spend more time on growing their business and looking at other ways that they want to service their customers.”

Spotlight

NextGen is Australia's leading technology provider to the lending industry, pioneering state-of-the-art solutions from loan application through to processing and settlement. It has a company mission of making lending easy by providing lenders, aggregators and brokers with easier and more efficient ways to deliver for their customers.

Company Profile

1993

YEAR FOUNDED

99%

Mortgage brokers using NextGen’s ApplyOnline®

70%

Australian mortgages processed with ApplyOnline

Lenders using ApplyOnline for electronic lodgement and/or loan processing

>1 million

Transactions a year completed in ApplyOnline

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IN PARTNERSHJP WITH

On brokers and open banking

"Mortgage brokers as Trusted Advisers are well positioned to utilise open banking to address the two biggest concerns of consumers: keeping their data safe and having their best interests at heart"

Renee Blethyn

Head of broker partnerships at NextGen

Brokers are standing at the brink of an enormous opportunity as open banking delivers an unprecedented range of high-quality customer financial information, says NextGen's Renee Blethyn

Read on

“[CDR] puts brokers right by the side of consumers when it comes to guiding them through the choices they have [of] financial services”

Renee Blethyn, NextGen

Milestones

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2012

2015

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2019

2021

Curabitur feugiat eget leo id tempus. Maecenas commodo, nibh at ultricies pulvinar, ipsum erat porta metus, et tempus justo tellus euismod dolor.

Better data, more business with open banking

Spotlight

Years of experience

Tenure at current position

3 years

On brokers and open banking

"Mortgage brokers as Trusted Advisers are well positioned to utilise open banking to address the two biggest concerns of consumers: keeping their data safe and having their best interests at heart"

Renee Blethlyn

Head of broker partnerships at NextGen

Brokers are standing at the brink of an enormous opportunity as open banking delivers an unprecedented range of high-quality customer financial information, says NextGen's Renee Blethyn

Read on

Advantage consumer Concerns around privacy in the minds of consumers appear to have been largely addressed, which should encourage more people to entrust their information to the system. Data from Frollo has found that completion rates of CDR consent are at 78%, versus 50% for sharing internet banking passwords to initiate screen scraping. Increasing trust combined with higher use of the system will become a positive feedback loop in terms of the range and quality of data that brokers can use. “Because of the consumer data regulation that open banking operates within, we will start to see more consumers increasingly choose to share their data this way," says Blethyn. "Which means that it will become a much better and more efficient way for brokers to extract the granular level of information they need to help formulate the loan recommendation and then process the loan application.”

Consumers place a level of trust in their brokers, and as questions about open banking become increasingly common, it follows that brokers will need to be across what it will mean when it comes to its impact on financial services and consumer choice. “It's important to understand that the purpose of the CDR regime is to provide choice, convenience and control to consumers,” says Blethyn. Brokers will also be better able to help consumers with budgeting or implementing a financial plan, a key concern for many borrowers in the face of higher interest rates and rising costs of living. “Being able to access open banking data with their customer’s express consent and have visibility of a customer's overall financial position means that a broker will be able to help their clients stay on track and or help them when they get off track in a much easier and more time-efficient way.” More engagement with brokers NextGen received accreditation as an ADR in June and is wasting no time in rolling out services to make life easier for brokers, and the home loan application process a better experience for consumers. Working in partnership with a leading aggregator, NextGen is delivering its first open banking solution directly to brokers, for brokers. “We’re introducing a new service that enables mortgage brokers, as Trusted Advisers, to use open banking to securely gather the applicant's financial data to inform and enrich the loan application,” says Blethyn. Offering the first opportunity available in the market to deliver this data to brokers directly, the new solution puts brokers front and centre as Trusted Advisers in the CDR regulatory model through an integrated process that empowers both the broker and the consumer to take full advantage of the regime and the opportunities it provides to transform the lending landscape. “It's a different way, a more secure way, with richer data points for them to be able to get the full picture of their customer to help them with their current process,” says Blethyn.

Renee Blethyn, NextGen

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“[CDR] puts brokers right by the side of consumers when it comes to guiding them through the choices they have [of] financial services”

“[NextGen’s open banking solution] is a different way, a more secure way, with richer data points for [brokers] to be able to get the full picture of their customer to help them with their current process”

“[CDR] puts brokers right by the side of consumers when it comes to guiding them through the choices they have [of] financial services”

Victoria, Australia

based in

1999

2003

2007

2015

2020

2021

Joins NAB as executive broker distribution

Becomes head of private wealth north at Westpac

Appointed head of asset finance at CBA

Named captain of the Waratahs

Named vice-captain of Australia's Rugby World Cup team

Waugh debuts as a professional rugby player with the Waratahs; makes Test debut with the Wallabies

Milestones

As an ADR, NextGen can receive data from data holder banks and lenders but then leverage the information-crunching power of its Frollo subsidiary to package consumer data points in a way that is useful to borrowers and the brokers who look after them. “Open banking captures all of their income, all of their expenses, and their financial position based on the information that they've chosen to share. Using machine learning, an analysis and categorisation of that data is provided to the broker.” The open banking integration has so far generated an overwhelmingly positive response from both brokers and consumers. “The feedback we've had from brokers is that it's a fantastic tool because they could easily see all their customer’s income or better talk to their spending habits. They were able to have more meaningful conversations about whether they were in a position of being ready to borrow now or to be coached on how to get fit for finance. “We’re enabling access to more data in a way that is safe for consumers, and it’s completely free for brokers to use.” Blethyn says brokers who take advantage of what open banking enables will put themselves ahead of the competition, especially given the significant activity among lenders preparing to start consuming open banking data in 2023. “The exciting thing is that open banking and understanding the CDR rules is going to be worth the investment of time when it comes to changing the process of accessing and collecting a customer’s data. Not only will it be extremely valuable in terms of time and effort saved, but the benefits and insights it can bring to the broker-client relationship are enormous.”

Over 92 million API calls so far in Australia

Average response time at one second

Reliability in terms of data holder response times nearing 100%

CDR covers 98% of consumer household deposits

Snapshot of open banking

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Source: NextGen

Renee Blethyn, NextGen

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Renee Blethyn, NextGen

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