Summary
Open Banking lets you securely share your banking data with accredited third parties — with your consent — under Australia’s Consumer Data Right (CDR) legislation, you can authorise apps and services to access your transaction history, account balances and product information directly from your bank; the data is shared via secure, standardised APIs and you can revoke access at any time
Open Banking in Australia began rolling out in 2019 and now connects 99.7% of consumer bank accounts — the four major banks (CommBank, ANZ, Westpac, NAB) were required to implement it first, followed by smaller banks; 175+ accredited data recipients are now registered, including fintechs, comparison platforms and financial advisers
In 2026, Open Banking is expanding to include non-bank lenders and Buy Now Pay Later providers — making it possible to share data from personal loans, car finance and BNPL accounts alongside traditional bank accounts; the same framework already covers energy, with telecommunications next
If you have ever used a budgeting app that links to your bank, compared mortgage rates on a comparison site that already knows your account balance, or received a loan approval in minutes rather than days — you have probably already experienced Open Banking, even if you did not know it by that name.
Open Banking is one of the most significant financial infrastructure reforms in Australia’s recent history. It is changing how data flows between banks, customers and financial services — and it is only getting started.
What is Open Banking?
Open Banking is a system that allows you to securely share your banking information — transaction history, account balances, product details — with authorised third parties, with your explicit consent.
In Australia, Open Banking operates under the Consumer Data Right (CDR) — a piece of federal legislation passed in 2019 that gives consumers the legal right to control and share the data that businesses hold about them. Banking was the first sector covered by CDR; energy followed; telecommunications and non-bank lending are next.
The key principle: Your banking data belongs to you. Open Banking means you can choose to share it — not the bank.
What Open Banking is not:
- It does not give third parties permanent access to your accounts
- It does not allow third parties to move money out of your account (that is what PayTo does)
- It does not share data without your explicit, specific consent
- It does not mean your bank shares your data without your knowledge
How Open Banking works
Step 1 — You consent
When you sign up to an accredited app or service — say, a budgeting tool, a mortgage broker or a comparison platform — they ask for your permission to access specific data from your bank. You see a clear explanation of what data is requested and for how long.
Step 2 — You authenticate
You are redirected to your bank’s own secure login page — the same login you use every day. You confirm the data sharing authorisation within your bank’s interface. Your bank credentials are never seen by the third party.
Step 3 — Data flows via secure APIs
Your bank sends the approved data to the accredited third party through standardised APIs (Application Programming Interfaces). These APIs are defined by the Consumer Data Standards — a technical framework overseen by the Data Standards Body (DSB).
Step 4 — You stay in control
Every consent you have granted is visible in your banking app. You can:
- View all active data sharing consents
- Amend what data is being shared
- Revoke access at any time — immediately, without contacting the third party
- Set expiry dates — consents can be time-limited (e.g. 90 days)
What data can be shared under Open Banking?
Under CDR, you can authorise sharing of:
- Account information: Account names, types, balances, features
- Transaction history: Up to 2 years of transaction data (reduced from 7 years under CDR reforms effective mid-2026)
- Payee information: Saved payees and payment destinations
- Product reference data: The features, rates and fees of financial products
What cannot be shared: Passwords, PINs, security credentials — never shared under CDR. Data is accessed via bank-issued authorisation tokens, not your credentials.
Who is involved in Open Banking?
Data holders: Banks and financial institutions that hold your data — CommBank, ANZ, Westpac, NAB and 100+ other institutions. They are required by law to share data when you consent.
Accredited Data Recipients (ADRs): Companies that are accredited by the ACCC to receive your data. There are 175+ ADRs registered in Australia as of 2026 — including budgeting apps, mortgage brokers, comparison sites, financial advisers and fintechs. A 55% year-on-year growth in participants confirms the ecosystem is expanding rapidly.
The ACCC (Australian Competition and Consumer Commission): The lead regulator of the CDR system — responsible for accrediting data recipients, enforcing compliance and overseeing the framework.
The Data Standards Body (DSB): Defines and maintains the technical standards for how data is shared — the APIs, security protocols and data formats that all participants must use.
The Office of the Australian Information Commissioner (OAIC): Works with the ACCC on privacy and consumer protection aspects of the CDR.
What can you do with Open Banking?
Faster loan and mortgage approvals: Instead of uploading 6 months of bank statements manually, you can consent to share your transaction history directly from your bank. Lenders get verified data instantly — reducing approval times from days to minutes. This is one of the most widely adopted use cases.
Better budgeting tools: Budgeting apps like Pocketsmith and others can link all your bank accounts (even across different banks) to give you a complete picture of your finances in one place — without needing to log in to each bank separately.
Smarter switching: Comparison platforms can access your actual product details (your current mortgage rate, your account fees) to show you precisely how much you could save by switching — rather than asking you to type in the details manually.
Personalised financial advice: Financial advisers can access verified account and transaction data to provide advice based on your actual financial position, not estimates.
Credit scoring for the underserved: Verified transaction data from Open Banking can help lenders assess creditworthiness for people with limited credit history — useful for new migrants and first-time borrowers who may not have a traditional credit file.
Open Banking in 2026 — what is new
Expanding to non-bank lenders and BNPL: In 2026, CDR is extending to non-bank lenders (personal loans, car finance) and Buy Now Pay Later providers. This means you will be able to share data from BNPL accounts (Afterpay, Zip, Klarna) alongside traditional bank data — giving lenders and tools a more complete view of your financial obligations.
Action Initiation — the next frontier: Australia’s CDR framework is expanding beyond data sharing to action initiation — allowing accredited third parties to initiate payments and other actions on your behalf. PayTo is the payments layer that makes this possible. This will enable new use cases such as automated savings, debt repayment and financial management tools that can act on your behalf.
Confirmation of Payee: Rolling out across Australian banks from July 2025, Confirmation of Payee checks the name you enter (BSB and account number) against the receiving account before you send money — helping reduce misdirected transfers and scam losses. While not exclusively an Open Banking feature, it is part of Australia’s broader payments modernisation alongside CDR.
Consumer adoption still growing: Despite the infrastructure being live, consumer awareness and active use of Open Banking remains low. Banks have spent more than AUD $1.5 billion implementing the system, but many Australians are not yet aware of what they can do with it. This is expected to change as more consumer-facing apps and services make Open Banking features visible and easy to use.
Open Banking vs screen scraping — what changed
Before Open Banking, many budgeting apps and comparison sites used screen scraping — they asked users for their internet banking username and password, logged in on the user’s behalf, and extracted data by reading the screen like a human would.
Screen scraping is insecure — it requires sharing your bank credentials with a third party, which violates your bank’s terms and creates significant fraud risk. Open Banking replaced this with a secure, consent-based, API-driven alternative where credentials are never shared.
Most reputable fintechs have now moved from screen scraping to CDR-based Open Banking, though the transition is still ongoing.
Open Banking and CDR across sectors
CDR is not limited to banking. The same framework is being applied progressively:
| Sector | Status |
|---|---|
| Banking | Live since 2019 — all major banks and 100+ institutions |
| Energy | Live — electricity and gas data sharing |
| Non-bank lending and BNPL | Expanding in 2026 |
| Telecommunications | Planned |
| Superannuation | Planned |
The vision: a single consent-based framework where you can share data from any part of your financial life — banking, energy, loans, super, telco — with any accredited third party you choose.
Is Open Banking safe?
Open Banking under CDR has strong built-in protections:
Consent is required: Nothing is shared without your explicit consent. You decide what data is shared, with whom, and for how long.
Only accredited providers: Third parties must be accredited by the ACCC — a rigorous process — before they can receive your data.
You can revoke at any time: Cancel any data sharing consent instantly from your banking app. The third party must delete or de-identify your data within a set period after revocation.
Bank-grade security: Data is shared via FAPI 2.0 (Financial-grade API) security protocols — the same security standard used by banks globally for sensitive API connections.
You never share your password: Your bank credentials are never seen by third parties. Authentication happens through your bank’s own secure login.
FAQs (frequently asked questions)
What is Open Banking in Australia?
Open Banking lets you securely share your banking data — transaction history, balances, account details — with accredited third parties, with your consent. It operates under the Consumer Data Right (CDR), federal legislation passed in 2019. The ACCC is the lead regulator.
Is Open Banking safe?
Yes. Data is shared via secure APIs with FAPI 2.0 protocols. Only ACCC-accredited companies can receive your data. You can revoke access at any time from your banking app. Your bank credentials are never shared with third parties.
Do I have to use Open Banking?
No. It is entirely consent-based. You choose whether to share data, with whom and for how long. If you never consent to share data, nothing is shared.
What is the Consumer Data Right (CDR)?
CDR is Australia’s federal legislation giving consumers the right to control and share data that businesses hold about them. Open Banking is the CDR applied to the banking sector. The same framework covers energy and is expanding to non-bank lending and telecommunications.
How do I revoke Open Banking consent?
Log in to your banking app and navigate to the Data Sharing or CDR section. You can view and cancel any active data sharing consents instantly.
Who regulates Open Banking in Australia?
The ACCC (Australian Competition and Consumer Commission) is the lead regulator. The OAIC (Office of the Australian Information Commissioner) oversees privacy aspects. The Data Standards Body (DSB) sets the technical standards.
How is Open Banking different from PayTo?
Open Banking shares data (read access). PayTo initiates payments (write/action access). They are complementary — Open Banking is the foundation; PayTo and Action Initiation extend it to enable third parties to act on your behalf, not just read your data.
Related guides
- What is PayTo? Australia’s new payment system →
- What is PayID? How to send money in Australia →
- What is BPAY? How to pay bills in Australia →
- What is Osko? Real-time payments explained →
What it means for your transfers
Open Banking is reshaping how Australians manage their finances — but it does not directly affect international money transfers, which are processed through separate systems. For sending money home to India, the Philippines, Vietnam, Nepal or anywhere in OrbitRemit’s network, the fastest funding method remains PayID — instant, free and available 24/7.
This guide is for general information only. CDR rules and participant lists change regularly — verify at cdr.gov.au and the ACCC website. Last updated August 2026.
Sources: cdr.gov.au — CDR Rollout (cdr.gov.au official) | Australian Banking Association — Open Banking (ausbanking.org.au, May 2026) | savings.com.au — Open Banking in Australia Explained (January 2026) | PocketSmith — Open Banking in Australia (1 week ago) | LUXHUB — How CDR Kicked Off Australia’s Open Banking (March 2026) | Fiskil — Open Banking Australia CDR Guide 2026 | openbankingtracker.com — Australia Open Banking overview
