What is open banking?

Average customer rating: 4.3/5
Written by James Hurwood
Reviewed by Stephen Zeller
Updated 13 February 2025

Expert tips for understanding open banking

Our General Manager of Money, Stephen Zeller has some tips for consumers to help them better understand how open banking works and how to keep their personal data secure within the open banking system.

Stephen Zeller
General Manager – Money

Caution is still crucial

Take steps to protect your personal information – while open banking is designed to be secure, it’s still important to take steps to protect your personal information. Consider using two-factor authentication where possible and make sure to routinely check your bank statements for any unusual transactions.

Verify third parties

Check the third-party provider/company you are considering sharing your data with is listed as an accredited third-party provider by the ACCC (Australia Competition & Consumer Commission). You should only share your data with a provider accredited to receive data by the ACCC.

We’re here to help

Open banking can be helpful to compare current home loan offers and interest rates, but there is more to consider when looking at home loans than just a low rate – such as features like an offset account or redraw facility options. This is where our expert team of online mortgage brokers can assist with reviewing your specific scenario and helping you choose a product option from over 20 different lenders.

Open banking explained

What is open banking?

What is the Consumer Data Right (CDR)?

How does open banking work?

What are the benefits of open banking?

How open banking contributes to increased privacy

Is open banking only available in Australia?

Open banking and you

Does open banking cost me money?

What are my rights and guarantees under open banking?

How open banking works when it comes to joint accounts

If I change my mind, can I stop sharing my data?

What do I do if I think my data has been compromised?

Meet our home loans expert, Stephen Zeller

Stephen Zeller
General Manager – Money

Stephen has more than 30 years of experience in the financial services industry and holds a Certificate IV in Finance and Mortgage Broking. He’s also a member of both the Australian and New Zealand Institute of Insurance and Finance (ANZIIF) and the Mortgage and Finance Association of Australia (MFAA).

Stephen leads our team of Mortgage Brokers, and reviews and contributes to Compare the Market’s banking-related content to ensure it’s as helpful and empowering as possible for our readers.

Australian Banking Association. Open Banking. Accessed December 2024.

The Australian Competition and Consumer Commission. The Consumer Data Right. Accessed December 2024.

3 Frollo. Open Energy. Accessed December 2024.

Australian Government: Consumer Data Right. What is CDR?. Accessed December 2024.

Australian Government: Consumer Data Right. Your rights. Accessed December 2024.

Parliament of Australia. ‘You’re more likely to divorce than switch banks’: will Open Banking encourage more switching? Accessed December 2024.