Tech: Identitii Ltd gets on the front foot ahead of new open banking laws
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Fintech platform Identitii Ltd (ASX: ID8) is getting directly involved in Australia’s shift towards open banking.
The company is one of 10 selected by the Australian Competition and Consumer Commission (ACCC) to test the new framework, which is set to go live from 2020.
The rollout of open banking follows the successful passage of Consumer Data Rights (CDR) legislation which require banks to share information, like mortgage and credit card data, with customers with the aim of increasing transparency.
Identitii and the other participants were selected for “their ability to meet the accreditation criteria by February 2020, their readiness to participate in testing and their proposed use case for the data”, the company said.
ID8 shares jumped almost 30 per cent this morning. It’s actually been a good week for the company, which has almost doubled over the past few days to 41 cents.
The stock price is still shy of its October 2018 listing price of 75 cents.
CEO Nick Armstrong said the company’s goal is to embed its Overlay+ technology into the new open banking framework.
The product offers a “secure path” for banks to exchange information with other lenders and customers via a private blockchain network.
“As banks begin to provide ‘open access’ to data from their core services, this data would be captured by Identitii to enhance its Overlay+ solution,” Armstrong said.
Following its work in the testing phase, Armstrong said Identitii “intends to apply for accreditation to become one of the first companies to access open banking data in Australia”.
Other companies selected by the ACCC to participate in testing include neobank 86 400, SME payment platform Quicka and financial software company Intuit.
Edu-tech platform MGM Wireless Limited (ASX:MWR) has scored a distribution deal, announcing a retail sales agreement with Officeworks “to sell the SPACETALK all-in-one smartphone, watch and GPS device”. Shares in MGM were up 6.7 per cent in morning trade at $4.42.
And there were a number of companies tapping investors for some extra cash. Tech infrastructure play Superloop (ASX: SLC) said its received commitments from institutional investors to raise $72m in a share placement, subject to shareholder approval. Vault Intelligence (ASX: VLT) has completed a $7.5m placement to institutions, while cloud security company FirstWave (ASX: FCT) announced a $6.6m raise to fund its international expansion plans.