One Big Step for the Banking Industry, One Giant Leap for FinTechs
On 1 July 2020, Consumer Data Right (CDR) was officially launched. Frollo headed the fintech pack being the first to receive data under the regime. The inaugural CDR flow occurred from National Australia Bank on 20 June 2020 at 5:35pm using Frollo. This flow is considered to signify the first sign of a properly regulated data economy. Rebecca Schot-Guppy, CEO of FinTech Australia has commented that the open banking system launch is a “step forward” for the fintech industry.
Frollo has commented on how impressed they were with the efficient absorption and categorisation of 12 months of transaction data occurring within the short span of 20 seconds. The efficiency is attributed to one of Frollo’s senior software developer, Brett Hopper who was heralded as the “Neil Armstrong in the world of fintech” making the significant leap into open banking. According to Frollo, there is already a waitlist of 1,000 customers who want to experience CDR.
During 1 July 2020, 20 of Frollo’s VIP customers were able to connect their bank data to personalised dashboards on the application and the open banking system proved successful. Frollo have also suggested they will be adding a “comparison tool” to the application’s toolset, which will allow customers to compare their bank data with other financial product options which could assist them in saving money. Regional Australia Bank, another party accredited by the ACCC to receive data also had customers on 1 July 2020 connecting their banks for data to be provided.
The open banking regime is more pertinent than ever, especially during COVID-19, when it is important to monitor and track finances. Utilising applications such as Frollo will ensure customers are able to keep track of important payments for amenities and suggest better usage of banking products.