How Open Banking is benefiting Basiq customers
Basiq customers across a range of use cases are already seeing the benefits of Open Banking. Because of this, we have a unique perspective on how Open Banking is performing. Read on to find out more.
Open Banking has come a long way since it was launched in 2020 and continued improvements are only making the system better.
Basiq customers across a range of use cases are already seeing the benefits of Open Banking, including; financial advice, personal finance management, debt relief & assistance, stockbroking and investing, payments, green economy applications, and lending.
Because of this, Basiq has a unique perspective on how Open Banking is performing. Read on to find out more about what Basiq has observed from customers accessing CDR data.
Businesses using Open Banking are seeing immediate value
Basiq customers that previously only used web connectors to access banking data are, in comparison, seeing increased connection availability via Open Banking and a better user experience for their customers.
Additionally, there are multiple institutions that no longer allow access via web connectors, such as HSBC and Macquarie, where access is only available via the CDR. This has enabled our customers to connect to a larger range of banks and service a new pool of potential customers.
A better experience for our customers’ customers
Undeniably, the most important benefit is to the end user; that’s what the CDR is all about.
We have seen an increase in businesses wanting access to Open Banking data to help protect the security and privacy of their customers. These businesses no longer feel comfortable asking their customers to share their passwords.
Not only does Open Banking give end users greater peace of mind when it comes to data security, but it also provides an all-round better user experience. With any tech-related product or service, end users expect almost instant outcomes and if the provider doesn’t live up to expectations consumers will go elsewhere.
We have found that for the Big Four banks the average connection time with Open Banking is FIVE times faster than via web connector.
When end users expect speed this can make all the difference. Open Banking helps to keep them engaged and moving efficiently through the user flow, decreasing the chance of drop-off.
Open banking is rapidly maturing
With any new technology platform, there is always a natural maturation process that often involves multiple roadblocks and clever problem-solving.
Through increased user traffic across multiple use cases, we’ve been able to identify and actively work to address gaps and resolve issues discovered in as close to real-time as possible.
Data quality has always been one of the biggest challenges deterring businesses from making the switch. In response, we have been monitoring and testing the quality of data over an extended period of time. As the Open Banking traffic flow has increased, we have seen the quality improve and is at a point where it is performing as it should.
While there are still improvements to be made, all stakeholders involved from banks and financial institutions to the ACCC, are working hard to address these as soon as possible and Basiq is actively contributing to this process.
Increased collaboration between banks and financial institutions
Open Banking has opened up an unprecedented channel of communication with financial institutions that has helped improve the reliability of connections and aided faster resolution of issues when they arise.
Historically, challenges with access to banking data via web connectors were often caused by banks making changes to their internet banking portals and the institutions had no obligation to work with fintechs to resolve any issues.
CDR has been a game-changer. It has provided the framework for an ecosystem where banks and fintechs are working together to service end users, opening up formal channels to quickly address issues and improve performance, stability and user experience.
Want to find out more?
To learn about how the Open Banking ecosystem is growing, including the changes impacting data access and how your business can make the switch, visit the Open Banking campaign page.
You can also find a number of educational and practical resources we have pulled together to help demystify and provide guidance on how to access CDR data.