Open Banking continues to prove its worth in Australia, with over 100 banks now using Open Banking for more than 30 different financial products, covering 99%+ of all Australian household deposits.

These were among several insights uncovered by leading Open Banking provider Frollo in its 2023 ‘State Of Open Banking’ report, which also revealed APIs are generally fast and reliable, with the average Data Holder providing data in 0.97 seconds.

Over the past 12 months, industry interest in Open Banking has continued to translate into action with the report finding the number of businesses able to access Open Banking data has more than quadrupled from 19 to 77.

Consumers Unaware

Frollo surveyed 1,066 Australians about financial data sharing, potential use cases, the things they find important when sharing their data and who they trust with it.

The report found that 61% of consumers want to use Open Banking to get a complete financial overview in one place, and 59% want to use it to streamline their mortgage application. When it comes to sharing financial information, privacy is the most important consideration for 91% of consumers.

But despite use cases continuing to grow, and a desire for security, control and transparency, consumer awareness of Open Banking remains low in Australia.

Government action required

Frollo CEO Tony Thrassis says it’s time for the government to start educating consumers about Open Banking, particularly in light of high-profile data breaches at Optus and Medibank.

“Open Banking promises to put consumers in control of their data by providing them with a secure, government-regulated way to use it. All the ingredients to deliver on this promise are available, except one: Consumers don’t know about Open Banking. And after years of being told not to share their financial information, they’re understandably cautious.

With the initial roll-out complete, businesses launching use cases and consumers showing real interest, now is the time for the government to start educating consumers about the secure, government-regulated alternative to sharing banking passwords.

If recent high-profile security breaches have told us anything, it’s the importance of data security and privacy.”

This article was developed in collaboration with Frollo, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Read MoreFintech

You might be interested in