What is Open Banking?

Open banking is a safe and secure way for customers to share their data with third parties. Up until now, banks haven’t allowed customers to share their data without having to download bank statements. Open banking democratises consumer loan and banking data, giving them the ability to share their banking data (loan information, transaction data etc) with third parties who are approved to receive the data by the ACCC. 

From a mortgage broker's point of view, it means that you will have access to your client's loan data in real-time and Sherlok can track their interest rate 24/7 to alert you if it becomes too high. You will no longer need to rely on the lenders to access this information and therefore you will be able to provide advice and guidance to your clients on your terms.

This increases competition allowing consumers and brokers to easily gain insights into their data and switch products and banks more easily.

Here's how Open Banking works:

Here is a quick Video which explains open banking: