Open Data, Explained

In Australia, only providers accredited by the Australian Competition and Consumer Commission (ACCC) can offer services using the Consumer Data Right. The ACCC accreditation process is rigorous, and requires providers to demonstrate they meet a number of obligations, including insurance, information security, technical and operational capabilities. Wych's ACCC CDR conformance testing was completed early in March 2022 with full activation by the end of March.

Accredited data recipients are the ‘receivers’ in the Consumer Data Right system and receive a consumer’s data after the consumer has given consent. The providers can then use it, although only for the purpose the consumer has requested – for example, to request switching from one bank to another. To receive data a provider needs to apply to become an accredited data recipient under Consumer Data Right and pass a whole lot of tests relating to technical capability, insurance, privacy and security and dispute resolution. They must also demonstrate they can comply with strict requirements to receive data. The amount of open consumer data will grow over time, as more and more providers become accredited across banking, finance and other industries like energy, telecommunications and more.

API refers to a set of application programming interfaces (APIs) which in Open Banking allow authorised third-party service providers to access and use financial data held by banks and other financial institutions. These APIs enable secure communication between different software applications so they can share data and provide customers with more personalised and innovative financial services. Some examples of services that can be built using open banking APIs include budgeting and financial management tools, payment initiation services, and loan and mortgage applications. Open banking APIs can also be used to enable customers to securely share their financial data with third-party providers, such as personal finance apps or accounting software.

Consent is the principle where a customer gives express permission for the collection, use and disclosure of their data. In many regions it's a requirement to request consent before interacting with a customer’s data. Without express consent, you should not able to collect, use, or disclose customer data. When a customer consents they are agreeing to a specific usecase, think of this as the "terms" of the consent. This information needs to be shared with the customer when requesting their data: Who is requesting access What they are requesting access to Why they are requesting access How long is the access required for How the data will be handled How they can revoke consent

Australia’s Consumer Data Right (CDR) gives consumers more control over their own data, enabling them to share it with accredited third parties so they can access better deals on everyday products and services. The Consumer Data Right is an opt-in service, giving consumers the choice about whether to share their data, with full visibility of who it’s being shared with and the purpose for sharing it. The CDR can make it easier to: compare products and services access better value and improved services assist financial and cashflow management. Information is transferred using secure automated data technology called APIs (application programming interfaces — are a software intermediary allowing two applications to talk to each other securely). Wych is an accredited CDR data recipient. We provide and maintain integrations with over 100 data holders so our customers can focus on using the data and delivering better offers to customers.

Data holders are the ‘givers’ in the Australian Consumer Data Right system. They hold the consumer data – for example, a bank or mortgage lender. Registered data holders are required to share a consumer’s data when the consumer directs them to, and only for the period of time allowed, which can be a single use or for a set period of time up to a maximum of one year, after which the consumer must provide consent again. they are required to provide a consent management system enabling a consumer manage their consent and privacy, including the right to be forgotten. Wych can help providers in Australia do the heavy lifting on achieving and maintaining compliance as a data holder. Connect to the Australian CDR ecosystem using our white label Data Holder Service and significantly reduce operational costs. We provide consent management, a full suite of APIs, identity and access management.

Financial technology (better known as fintech) is used to describe new technology that seeks to improve and automate the delivery and use of financial services for consumers, small businesses and enterprises. Technology is integrated into offerings by financial services companies to improve their use and delivery to consumers and fintech companies typically unbundle offerings by traditional banks and creating new markets for them. Companies in the finance industry that use fintech have expanded financial inclusion and use technology to cut down on operational costs. open Banking and Open Finance will further improve the ability of every consumer to do more with their money.

When you connect with Wych Data and our API, you’ve got access to reliable CDR banking and energy company data from 110+ sources. This is the type of financial data you can access: Account details Balances Current transactions Historical transactions Account classification Transaction classification Products and services Fees

Insurance companies can use open banking and the consumer data right (CDR) to access financial data from their customers, including spending patterns and credit history, to understand their risk profile better and provide more personalised insurance products and services. By analysing this data, insurance companies can create more customised products that better meet the needs of their customers, ultimately leading to higher customer satisfaction and loyalty. Open banking can also help insurance companies streamline underwriting processes by providing more accurate and up-to-date customer information. This can help insurance companies better assess risk and make more informed decisions about pricing and coverage. Insurance companies can also use open banking to improve the customer experience by simplifying the insurance application process. By enabling customers to share their financial data directly with insurance companies, customers can avoid the need to provide paper copies of bank statements and other financial documents. This can save time and reduce the hassle of applying for insurance.

Open Data describes a practice of financial institutions sharing data with regulated third-party service providers via secure APIs, with the customer's consent. The goal of Open Banking is to create greater financial transparency and provide customers with better access to and more control over their financial data. The most important form of open data for consumers right now is open financial data. The goal of open financial data is to enable people to use their own information to do more with their money. This could include: signing up more easily for new credit or debit cards, getting a loan more easily, using budgeting tools to track and plan spending or switching from one bank to another more easily. Open financial data is shared through the use of application programming interfaces (APIs). This creates an ‘open’ network of shareable data between financial institutions, who hold the data, and service providers, who use the data to create new offerings with the express consent of the consumer. Depending on the location, consumer-owned financial data can now be shared with third parties by choice. Different countries have established different ways to enable this, in Europe there is GDPR, in Australia there is a Consumer Data Right (CDR) and New Zealand is contemplating a data right for consumers in 2024. In Australia, where Wych is accredited by the ACCC to participate in data sharing, the banking, finance, telco and energy sectors will be or are already required to participate. The types of personal information and financial data that can currently be shared with accredited third parties could include: Personal: information such as phone number, email and address. Account: balances Product info: rates, fees and features of bank products Transaction details: amounts spent Read our current analysis of the global Open Data environment.

Open Finance is the next step of open banking and will encompass more financial products and services, not just banking. Open Finance works on a much larger scale than Open Banking. It could allow authorised third-party service providers to access a wider range of customer data from various accounts, including savings, super, investment, insurance, mortgage and more. This data could be used to create and offer more personalised financial products and services. The goal of Open Finance is similar to that of Open Banking - providing consumers with more control over their financial data. But since Open Finance functions on a greater scale than open banking, it should really drive adoption of data sharing by providing a huge number of extra use cases. For example, Open Finance could enable multiple customer accounts, such as savings, investment and current account, to be brought into one interface. Open Finance could also enable automatic money transfers between different accounts, i.e. savings and investment accounts or support use in insurance, the provision of bundled offers and more.

Screen scraping involves a third party logging into a bank’s app or website on the customer’s behalf, retrieving information or initiating a payment. There are only two techniques to establish a connection to a bank and retrieve financial data or complete transactions via a bank account. Either an application programming interface (API) is used, or screen scraping. The use of screen scraping has enabled data to be exposed, compromising the security of the user. Open Banking APIs have no such risks. Banks and consumers therefore have more control over the data retrieved, sharing only what is necessary for the third-party service. Customers do not need to share their credentials with the third party, thus risking losing them in the event of a cyber security breach. Furthermore, Open Banking APIs are transparent when it comes to the consumer, enabling an individual to grant or revoke access to their data. The third-party provider does not need to receive access to the consumer’s login details when these APIs are used. Screen scraping works by allowing a third party to access a customer’s bank account using the customer login credentials. Those credentials are then stored by the third party, which means they can scrape the data from the bank account and use this information just like the customer would, whenever required. Screen scraping isn’t a secure method for accessing data. When a third party accesses the user’s bank account, they can view everything as the consumer would, and have the ability to interact with the financial data as if they were the consumer. The European Commission prohibits the use of screen scraping, as does the Finacnial Conduct Authority in the UK. It is currently unregulated in Australia and the Government has indicated it intends to introduce legislation to phase out the practice over time.

Security is at the core of Open Banking, and everything has been built with maximum security in mind. This applies to everything from the APIs to all related data handling. Open Banking has implemented strong customer authentication and consent management features to ensure security. Wych has integrated robust security features that can protect businesses including bank level security. We ensure bank-grade security is in place to protect customers and their sensitive information. We encrypt data at rest and in transit using minimum 2048-bit encryption. We do not use screen scraping. Any companies receiving data must demonstrate their security and be accredited by the ACCC before receiving any data. When asking to access this data, companies must also inform consumers how and for how long it will be used.

We have three simple pay as you go options, ranging from our Basic Plan starting at $0.50 per user per month with real time access to financial data and connections to over 110 financial institutions in Australia and New Zealand*. Our Premium plan includes data enrichment and pre-built insights and is $1.00 per user per month. Finally, our Enterprise Plan includes alerts, customised reporting, predictive analytics and the ability to build your own insights, please contact us for pricing. *Regulatory requirements may limit your access.

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