Open Banking is paying off already for brokers, with banks now able to provide customer details within as little as three seconds.
Fintech Frollo has crunched the data on Open Banking in Australia to provide a run down of the fastest data providers to the broker channel, with 86 400 being named as the quickest bank to deliver results.
86 400 could turn around a broker request in fewer than 0.2 seconds, with big banks like NAB, ANZ and CBA able to do it in less than 1.
“What we’re providing, for the first time, is the speed of Open Banking APIs,’ said Gareth Gumbley of Frollo. “We’re looking at how quickly an end to end response time is from a data holder.”
“With Open Banking, banks are required by government to provide information about their customers and then customers are able to share that consent with organisations for Open Banking use cases.”
“In summary, what we were doing is measuring how long it takes for us to gather the account information on a consumer’s account, gather the balance information and also the transaction information, to see which data holder is the fastest in delivering the information back to us as a data recipient.”
“If you think about it in layman’s terms, it’s 0.2 for 86 400 and 0.3 for Up, and at the other end for Macquarie Bank, it’s 4.7 seconds.”
For Gumbley, publishing data like this was vital to showcase to customers and brokers what the effects of Open Banking could be.
“It’s about implementation,” he said. “I think what we’ll find from exercises like publishing this data, the banks will start to optimise the experience that they’re offering.”
“If we were to talk about the mortgage world and the broker channel, a broker would be able to get information on their customer’s finances in Macquarie’s case, within 5 seconds.”
“Within a minute, you’ve gone away, gathered all the transactions and brought that information back to be able to categorise it and turn it into something meaningful for a conversation about lending them money.”
“In the case of one of the neobanks, that can happen in a matter of seconds. We’re going away, fetching the data, bringing it back and then we’re having that conversation about income and expenditure.”
What all of it is doing is replacing what was previously being done with PDFs of bank statements or screen scraping, which took three to five minutes to do the same kind of thing. We’ve massively shifted the dial in terms of delivering things faster, but there’s still work to be done to optimise the experience so it’s as frictionless as possible.
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