In case you haven’t heard, Open Banking is now a thing in Australia, with a quiet launch going unnoticed in July. The real benchmark will be the 1st of February 2020, when the big banks are regulated to open their data doors to Open Banking APIs. As the future of all money matters and financial data rights, Open Banking is the hot topic among the tech and finance industries. (And trust us, that won’t change anytime soon.) So what is open banking? And how can it benefit you and your business? As the world’s first open banking real-time payments platform, please, allow us to explain. 

What is Open Banking?

Australia’s new banking system will allow you to take control of the information that banks and other financial institutions have about you. Prior to open banking, accessing your full financial data was difficult, and sending data from bank to bank, or company to company, was a slow and painful process. This made actions such as comparing financial products, or switching from one bank to another, inconvenient, to say the least. Luckily, the introduction of open banking will remove tricky barriers of the past and offer complete transparency and ease. You will be able to request your data or direct it to be sent to an accredited third-party data recipient, such as us, Split Payments. Essentially, open banking will allow you to control who can access your data and how they can use it. 

How does Open Banking work?

To further explain, here are a couple of examples of how it works.

Example 1: If you start to use a new budgeting app, open banking allows you to import all of your financial data in a snap. With all of your information at your fingertips, you can easily manage your money, track your spending, and optimise for saving.

Example 2: Previously, if you wanted to apply for a loan or a credit card, it was easiest to do so within your current bank, as they already owned all of your data. But now, if you discover a product offered by another institution that better suits you, open banking makes signing up elsewhere just as easy. All you have to do is tell your current bank to send your data to the desired bank or lender.

What is an Open Banking API?

For those unfamiliar with tech jargon, API stands for application program interface. Open Banking APIs allow third-parties to build applications and services around financial institutions and easily access personal and financial data. They also allow banks to innovate and enhance their current products and services, thereby further engaging customers and satisfying their needs in a secure way. This results in greater transparency for everyone involved. 

What is Split’s Open Banking Payments Platform?

Split Payments offers the world’s first open banking real-time payments platform. As a comprehensive solution for business-to-business accounting, Split makes it easy for businesses to connect and transact directly and freely across the entire Australian and New Zealand banking system. Split specialises in open banking, consent management, and real-time payments. We have reimagined direct-entry banking to deliver the fastest, most secure and reliable digital solution, which dramatically reduces dishonours and improves clearance times. Our API’s features include: 

Real-Time Direct Debit ™

Intelligent Clearance ™

Consent Management ™

Our highly consumable API provides a powerful and future-proof payments solution for businesses to handle direct debit payments, complicated disbursements and real-time settlement. Our mission is to reimagine global banking infrastructure through deep tech innovation and to create a new era of payments.

We believe that there is unnecessary pain in the way businesses collect and make payments. We knew there had to be a better way. 

So we built it.

To learn more about our platform, click here.