The framework would allow consumers and businesses to permit third parties such as fintechs to access their financial data to provide innovative services. The Department of Finance published a consultation paper outlining the pros and cons of open banking, and invited the public to submit their comments by 11 February 2019.
The federal government in its budget last February announced it planned to study the concept, which has already been implemented in the UK and the European Union. The department said the focus of the open banking review will be financial transaction data, such as withdrawals and account balances, from federally-regulated banks.
In its consultation paper, the department says applications using an open banking framework could potentially allow users to review their monthly financial transactions over several years to determine spending patterns and savings goals.
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