A new report released by open banking platform Frollo shows 49% of banks provided open banking transactions in under one second in the first quarter of 2022.
Almost half of data holders (22 out of 45) provided transaction data to Frollo in less than a second on average, which is up from 16 in 2021.
Frollo chief information officer Tony Thrassis (pictured) said open banking had the potential to revolutionise the way brokers deliver value for their customers.
“Easy access to a real-time, detailed financial snapshot will allow brokers to focus on helping their customers become ‘lending ready’ and advising them about their options, instead of spending hours collecting and verifying information,” Thrassis said.
Thrassis said the experience for the consumer was greatly improved as brokers can now safely share a financial snapshot with just a few clicks, knowing they’re always in control of the data.
“Open banking has the potential to offer a dataset to build innovative and personalised experiences, although it is important a business can count on the data available, which has not been easily accessible,” he said.
Frollo performed an initial analysis into open banking as part of its performance reporting, which compares transaction accounts by data holders and banks over 26 selected properties.
The 26 properties form a typical personal finance management case with expense categorisation, spend insights, bill tracking and product comparison. Additional properties included account information and transaction information.
Of the data holders who participated, St George Bank provided most of the data (96%) while NAB at 69% and UBank at 73% trail behind.
Thrassis said Frollo found most data holders were becoming faster and more reliable over time.
“As with most new technology products, they can be improved using real-world data,” he added. “Close to 30 million API calls to date have provided plenty of opportunities to learn, so data holders often reach out for help for assistance with improving their performance.”
Read more: RBA remains firm on interest rates
Thrassis said Frollo wanted to help the continuous improvement of performance for the open banking ecosystem because everyone benefited when data holders became faster and more reliable.
“It’s great to see banks that have optional data provide it,” he said. “St. George provides 25 out of the 26 properties for a typical personal finance management use case and that’s more than any other data holder in our analysis.”
Thrassis said the next step for the open banking provider was to look at data quality, which they want to include in future research.
