Open banking: customer-friendly to customer-first
Right now lenders are competing based on customer-friendly features and being digital-first. Lower fees and faster approvals have allowed fintechs and alternative lenders to capture a significant amount of market share from the banks. But product features and distribution channels are not a sustainable source of competitive advantage, especially if the experience of the major banks is anything to go by...
As banks rapidly catch on and invest their significant resources into a customer-centric, digital-first transformation, the only way to future-proof your business is to be customer-first.
At the core of a customer-first approach is financial data and the ability to acquire it with customer consent.
Under the Consumer Data Right, the Australia government has mandated all banks (ADIs) to open up customer data and accelerate the creation of customer-first financial services. Open banking represents a huge opportunity for anyone who can start leveraging the data early to generate actionable insights into an individual’s behaviours, preferences and needs.
Open banking represents a huge opportunity for anyone who can start leveraging the data early to generate actionable insights into an individual’s behaviours, preferences and needs.
How you can prepare for open banking
Right now, only 7 institutions have successfully received accreditation to receive data. One reason for this is the complex accreditation process that is both time and resource-intensive, with estimated costs of +$50,000 in annual compliance fees and a three-month timeframe before onboarding.
As an alternative, open banking data aggregators like Basiq allow you to leverage CDR data as it’s made available.
Basiq lets you onboard customers and secure consent in an open banking compliant and user-friendly manner. One-time consent gives you ongoing access to your customer’s financial data from +100 institutions.
Our partners have seen 20% month-on-month customer growth using our platform to:
- Secure CDR-compliant consent;
- Instantly verify accounts and funds to boost customer conversion;
- Personalise collections based on verified income (both regular and irregular) and;
- Gain insight into spending patterns and liabilities to nurture their customers into affordability.