FDATA and Yodlee are optimistic on Open Finance: “the right data, in the right hands, at the right time, can change the world!”
Interview with: Jamie Leach, FDATA and Tonia Berglund, Envestnet Yodlee
Key Points discussed include:
CDR is more than Open Banking – it’s open finance and open data – but what are the immediate opportunities, and what’s coming in the longer term? Listen to this podcast to learn more.
According to FDATA and Yodlee, there are three winners from Open Banking: consumers, fintechs and banks.
Banks forced to share data; but banks can embrace banking – they can use data too - also banks can develop new services.
Banks have legacy systems but getting ready for Open Banking means better quality data within the bank; this increases efficiencies for the bank.
Open Finance delivers some very basic outcomes – more transparency, more insights into pricing; is crucial for transferring someone from another bank (switching campaigns will boom)
Analytics and Apps are both crucial for fintechs as they drive innovation
Many Business cases still not proven – will take time to understand what works and what doesn’t.
Plus, some way to go in terms of all banks sharing data: “we are two miles into the Marathon,” says Jamie Leach of FDATA.
Jamie covers topic of cost and barriers to entry for fintechs - why is Australia 4 or 5 times the cost of UK to participate in the Open Data regime? (Note: UK doing 800 million API calls a month, and rate of growth is 100%+)
Is the worry about security and consumer protection in Australia leading to higher costs?
What are the issues for fintechs who want to switch from ‘screen scrapping’ to Open Banking Data?
Discussion of consent; how consumers give consent to FSIs to use their data; How important is Privacy by Design and what does it mean?
Discussion on Data Collaboration and Data Standards; this is a new area for tech and for the law; where are we at in Australia?
Discussion on how FSIs/fintech use the data they collect – especially using Ai to understand both individuals and trends; how does Ai blend with Open Banking?
Jamie Leach is the Regional Director in Australia and NZ for The Financial Data and Technology Association, a role that see’s Jamie work with government, regulatory authorities, and financial industry stakeholders to open up Australia’s and New Zealand's financial sector so all companies can benefit from the Consumer Data Right, also known as Open Banking.
Jamie is also the Founder of Open Data Australia, Board Chair of tech start-up GridQube, sits on the International Advisory Committee for the University of Melbourne Centre for Spatial Data Infrastructures and Land Administration, and is an expert on e-KYC and Digital Identity for the UN and the World Bank.
Tonia Berglund is Director of Product at Envestnet Yodlee. Tonia is responsible for heading up Open Banking in Australia and New Zealand, bringing together the global open banking strategy for US based aggregator and Wealth Tech Company Fintech, Envestnet I Yodlee.
Tonia has spent the last 18 years driving digital change as a senior leader in the Technology and Finance sectors, working in large and small organisations including CBA, Westpac and the Federal Government. She holds Post Graduate Degrees in Business and Technology and has been at the forefront of heading up transformation programs moving systems and processes online across business, wealth and retail divisions.