Regional Australia Bank approves first Aussie open banking loan
Regional Australia Bank and financial data firm Basiq have approved the first loan provided in the country under open banking.
The news arrives a few days after the country launched open banking with the big four Australian banks – ANZ, NAB, Westpac and Commonwealth Bank.
Open banking in Australia operates under the Consumer Data Right (CDR).
Australia’s competition watchdog finalised the rules governing Consumer Data Right regulations in February 2020.
The rules legally required the country’s four major banks to share product reference data with accredited data recipients as of 1 July 2020.
A February launch day was delayed due to concerns over data testing and security.
The Australian Competition and Consumer Commission (ACCC) worked with the big four. It also granted accreditation to Regional Australia Bank and app-maker Frollo.
All firms that seek to gain this accreditation will have to go through a “rigorous process”.
According to Basiq, the open banking loan application took six minutes to complete from end-to-end.
“Regional Australia Bank has demonstrated the value exchange awaiting consumers who consent to share their data and what this process could look like,” the firm writes.
Founded in 1969, Regional Australia Bank is a member-owned back located in Armidale.