Adatree, a data intermediary and fintech company at the forefront of Open Banking, has become Australia’s first ‘principal’ under the new Consumer Data Right (CDR) access models.
This landmark achievement is enabling the company to help other enterprises so as to bring their data-driven products and services to life and thus access relevant data without having to undergo a complex, costly and time-consuming process of accreditation.
The new access model is part of the Government’s recent amendments to the CDR regulations in October to increase participation in Open Banking.
Sherlok becomes Adatree’s first CDR representative
It allows accredited data recipients, with stringent security practices, like Adatree, to act as principal to others to access data, with the other becoming the representative.
The first business to be a CDR representative is Sherlok, an automated repricing and refinancing tool, used by many mortgage brokers and monitoring 35,000 home loans.
Powered by AI technology, Sherlok helps brokers retain clients by monitoring clients’ interest rates against other lenders, identifying those at risk of leaving a broker, then refinancing their loans to a lower interest rate on behalf of the broker to improve customer retention.
Sherlok has entered the CDR to receive real-time and consented transaction data to create an Australian-first offering that will be a gamechanger for the industry.
It will give brokers mortgage analytics and insights to arm them with the ability to make instant credit decisions for clients with minimal effort via a single-click refinancing solution.
Adatree and Sherlok, a winning duo
Through the partnership, Sherlok has been able to impressively slash the time, effort and cost required to access CDR data, from a month-long process down to just a few days.
Jill Berry, the Chief Executive Officer and co-founder of Adatree shared his insights.
“We’re thrilled to collaborate with Sherlok to become the first Australian company to bring this new regulatory access model to life. The process to participate in the Consumer Data Right is very lengthy and complex, with security and regulation at the heart of it.”
“Hundreds of companies are registered as interested in becoming Data Recipients, but are yet to start the process. Adatree is leading the way by making it easier for businesses to overcome the high barriers to entry when it comes to CDR and achieve their goals much faster.”
“They get the benefits of CDR by working with Adatree to do the heavy lifting for them.”
Adatree shortens data access time frame
Adam Grocke, Sherlok’s CEO and founder says, “When we launched to market this year, we considered starting our own journey to becoming an Accredited Data Recipient, but a combination of red tape and changing legislation made it really difficult.
“We then discovered Adatree as our sponsor and our time frame to market has gone from months to weeks, thus providing brokers with a powerful live data service to help their customers reduce their current interest rate and make better-informed home loan decisions.”
Senator Jane Hume, Minister for Superannuation, Financial Services and the Digital Economy, explains, “Adoption of the Consumer Data Right is forging ahead, with industry taking to the new ‘Principal’ access model just weeks after it was formalised.”
“Adoption of CDR means better, cheaper and more bespoke products and services.”
“Congratulations to Adatree for leading as Australia’s first CDR accredited principal, and to Sherlok who are poised to reap the benefits for business and mortgage holders.”
With accelerated timelines, Sherlok and others following the path of becoming a representative will continue to undergo thorough information security assessments to ensure they meet the required regulations of the data sharing technical standards.
