As Australia enters a new era for banking, Sydney-based purpose driven fintech, Frollo, is leading the charge as one of only two companies approved to access the data from the new Consumer Data Right (CDR) system as it goes live.
With first access, Frollo is in a unique position to help traditional banks, neobanks, FinTechs, lenders and employers get ahead of the competition with its B2B and Open Banking solutions.
The financial management company, which currently has over 100,000 users on its award-winning financial wellbeing and budgeting app for consumers, is the only fintech to be an Accredited Data Recipient under CDR rules after it participated in the Open Banking trial and helped build and test the infrastructure alongside the big four banks.
Gareth Gumbley, CEO and Founder of Frollo said after investing in getting accredited, the next step for organisations was pulling the data and understanding how they could compete with it.
“Now that the Consumer Data Right is live, the next step for everybody is how to leverage the data for a competitive advantage.
Given our experience testing alongside the banks, we’re in a position to educate and guide other businesses looking to comply, compete, innovate and leverage the opportunities available under the system.
While other financial organisations looking to get accredited will benefit from clearer testing and rule frameworks compared to our experience, it will still be a challenging process for them, which we can certainly help with,” said Mr Gumbley.
“Once these organisations become new ADRs, we’re also in a unique position to help them actually collect the CDR data through our SaaS technology solutions.
We’re currently one of the only organisations to have technology built specifically for open banking in Australia, which makes it incredibly valuable for new ADRs who don’t have the resources to invest in their own solutions,” he added.
How is the Consumer Data Right helpful?
The CDR gives consumers greater control over their own data, including the ability to securely share data with a trusted third party. It aims to help consumers monitor their finances, utilities and other services, and compare and switch between different offerings more easily.
The system also aims to encourage innovation and competition between service providers, helping consumers to access products and services that better suit their specific needs.
Gareth Gumbley, CEO and Founder of Frollo said open banking had triggered a massive shift in the way organisations think about consumer data which would benefit Australians.
“The Consumer Data Right system gives organisations the ability to be faster, more transparent and more secure.
From today, we’re moving into a world where we can give users a real-time view of their money and will soon be able to confidently move them to the best products available with a couple of clicks,” said Mr Gumbley.
In line with Open Banking going live, Frollo is launching a new AI engine for transaction enrichment which will be rolled out to all of its users and data sources over the next few weeks.
All Open Banking transactions will be categorised and enriched by the newly developed AI engine, with over 40% improvement in accuracy over the platform’s current categorisation.
Transaction enrichment is the foundation of personal finance management features like insights, budgeting, goals and financial wellbeing scores, so all of these features will get a significant boost.
As it is built on AI and Machine Learning, it will continue to improve over time with more data.
Under open banking, consumers are set to benefit with significant savings thanks to securing better deals on financial products. Frollo estimates consumers could save around $1,105 each year on mortgages, interest and credit card fees.
With the benefits of Open Banking data, Frollo will now be able to help consumers identify when they are missing out, paying too much or should switch to a better deal with their existing bank.