Open Banking will come into play in February 2020 in Australia. Very simply, it allows consumers to request the data related to their banking activities to their bank, and share them with other organisations, including other banks. Looking at your data, these organisations could potentially offer consumers better deals, and save them some money and time.
On paper, it looks great, but in practice, key stakeholders will have to be smart in the way they communicate this to consumers. Even with strong incentives, Australians sometimes won't budge (think energy bills).
Six months before its implementation in Australia, the level of awareness around the initiative is worryingly low. Open banking in the UK provides us with a case study, but it is not a good one. A year after its launch, only 9% of Poms had used open banking, and it feels like they have made a mountain out of a molehill.
If we want to avoid replicating this, now is the time to start raising awareness of open banking, and a blog post here and there won't do the trick. Here are two recommendations to start with:
- It should be an industry-wide effort. In English we say "the more, the merrier", but the French say "the more, the stronger". Not that they're always right—even though they like to say so—but I strongly believe the BFSI industry has more chances in making open banking a reality by considering joint efforts and campaigns.
- Change the codes, but stay humble. If people don't adhere, that's because either your product or your communications are crap. Open banking is a good offer, we just have to tell the story right. Let's get out of our marketers' bubbles, get rid of our biases—no, our lifestyles do not reflect the population—and come up with an overarching approach that will actually resonate with Australians' values, not just our own.
Dubbed open banking, it is legislated to begin in February 2020. But few Australians have actually heard about it. New research from financial research firm DBM Consultants has found 85 per cent of us do not know about open banking.