To date, Basiq has enabled over 900,000 Open Banking connections between consumers and businesses to help with tasks such as budgeting, investing, tax reconciliation and loan applications. It’s expected that by December 2024, the number of Open Banking Connections will hit 1.3 million.
The report analyses connection data from the Basiq platform including volume, success rates and ongoing performance, benchmarking it against the performance of web scraping. Web scraping, also known as Digital Data Capture (DDC) or screen scraping, is the widely used alternative and predecessor to Open Banking.
Analysis of the data has revealed three key findings:
Finding 1: Open Banking growth is booming
The popularity of Open Banking is steadily increasing, challenging the perception of slow growth and minimal uptake. Between October 2022 and March 2024, Open Banking experienced a 30 per cent compounded growth rate on the Basiq platform, with connections rising from 10,400 to 777,000. In the last 12 months, almost 50 per cent of all new connections on the Basiq platform were made via Open Banking.
Finding 2: Open Banking leads to more customers
Contrary to the belief that Open Banking results in high consumer drop-off, Basiq has found its success rate is almost double that of web scraping, with 80 per cent chance of success compared to 42 per cent. Financial institutions implementing more robust anti-scraping measures and heightened business and consumer concerns regarding data security are impacting connection success rates.
Finding 3: Open Banking is superior for ongoing connections
Only 0.17 per cent of Open Banking connections face disruption after six months, compared to 15 per cent for web scraping, making Open Banking 88 times more reliable for businesses requiring ongoing connections, such as budgeting or investment apps.
“We wanted to release our findings publicly to challenge the existing negative Open Banking narrative and provide a more optimistic perspective backed by data,” said Damir.
“While Open Banking is far from perfect, the highly critical views circulating do not reflect the reality we see,” Damir continued. “Our platform data and customer feedback tell a very different story – one of growth and success.”
“Acknowledging that connection performance is only one factor impacting Open Banking’s growth, we intend to dive into other key topics, including data quality, in future reports,” closed Damir.
Trust accounts are a fundamental vehicle for individuals and organisations to safeguard and manage assets for designated beneficiaries. They play a vital role in protecting assets and ensuring their proper distribution, a common practice in industries such as medicine and law, as well as in charities, estate planning, and investments.
The challenges of reconciling Trust accounts
The reconciliation of trust accounts involves collating data from various sources including bank statements, client records, and internal systems. Consolidating and reconciling data from these disparate sources is a labour-intensive process.
It can involve requesting and uploading bank statements and meticulously matching transactions, a tedious process that consumes valuable time and resources. As a result, it can be prone to inefficiency and errors which can jeopardise the integrity of the trust and expose it to the risk of misappropriation.
Using Open Banking
Open Banking provides an avenue to optimise the trust account reconciliation process by enabling access to real-time data from banks.
1. Save time and money Say goodbye to manual requests and uploads. Open Banking facilitates swift access to real-time banking data, eliminating cumbersome paperwork and expediting the reconciliation process. By automating routine tasks, financial professionals can focus on value-added activities, saving time and reducing costs.
2. Streamlined access Navigate multiple consent flows with ease. Open Banking offers a unified method for accessing banking data from various accounts, simplifying workflows and enhancing convenience. With just one consent, financial professionals can access a wealth of information, making trust account management more efficient, especially when ongoing access to banking data is possible.
3. Easily spot irregularities Access to real-time banking data means the process of identifying discrepancies becomes straightforward. Whether it’s an outlier transaction or a mismatched entry, ensuring accuracy and compliance is a straightforward process.
4. Data insights Access to real-time banking data through Open Banking allows for data-driven insights that can inform strategic decision-making. Financial professionals can analyse trends, identify patterns, and make informed decisions to optimise trust account management strategies.
Accessing Open Banking with Basiq
Accessing Open Banking via the CDR is a straightforward process where the owner of the bank account consents to their data being shared. The user is redirected to their respective bank to login via their Internet banking portal.
Once the respective bank account is selected the data can be shared with ERP systems, accounting software and specific trust accounting software to optimise the reconciliation process.
The past couple of years have meant significant growth for non-bank lenders and there are no signs of slowing down, says Bronwyn Yam, the chief product officer at Cuscal.
According to the RBA, the sector grew on average 15 per cent on a six-month annualised basis, more than twice the rate recorded by banks.
It is an exciting – and competitive – time. And it is in this context that the non-bank lender sector prepares to be the next one rolling out the Consumer Data Right (CDR) in Australia. While some organisations try to understand how to best navigate this complex initiative, a key aspect may get lost amid the regulatory language: CDR is way more than compliance costs.
For those organisations willing to make this part of their digital transformation, the initiative presents opportunities to stay competitive, improve efficiency, enhance customer experiences, and drive innovation in the financial services sector.
As a partner of many banking and non-banking organisations, we’ve seen firsthand how data can improve an organisation’s ability to draw strategic insights for its business plans. The good news is that some implementations can be API-driven on a subscription basis, enabling users to securely share their data and empowering companies to build improved financial applications.
Here are key takeaways on how a well-implemented CDR solution can boost businesses.
Improved customer experience: As an accredited organisation, non-bank lenders will have access to use consumer data to offer more tailored solutions. Companies that channel this supercharged data pool to drive innovation and product development will deliver improved customer experiences and personalised financial services – a potential make or break in a competitive environment. Easy wins include increasing conversion rates by fast-tracking your lending application process with a mobile-first experience, expedited approval times, quick account verification and pre-funds checks, and streamlined onboarding, easing the deposit of funds and progressing the lending cycle from origination to collections. And this is just the beginning of improved customer experience.
Increased visibility of client movement: Non-bank lenders, as mandated data holders, should want access to the metadata generated by their existing customers sharing their data with other organisations. This new dataset becomes a source of powerful insights. At Cuscal, we call them a moat for our clients, protecting their businesses’ revenue and profit. The premise is that if companies use and analyse the data properly, they will notice trends or clients looking to move, allowing them to counteract with a better experience.
More accurate risk management: While accessing data is a crucial step in developing a financial application, extracting insights from it truly unlocks its value. Adding comprehensive data overlay services helps companies harness the power of data to make more informed lending decisions, improve risk control, proactively manage hardship, and reduce default rates. Benefits include a deep understanding of spending behaviour with access to enriched transaction details, empowering non-bank lenders to improve their risk assessment capabilities.
Increased cyber security: Maintaining robust cyber security practices helps build trust and confidence with your customers and assures them that their data is handled securely and responsibly. CDR also changes the game for consumers and businesses regarding cyber security. It is a safer solution than outdated methods, such as screen scraping, which require customers to share their login details with third parties (e.g. lenders and brokers) for the various compulsory checks for responsible lending obligations. Banning these insecure practices, such as sharing PDFs and scans of transaction statements, minimises the risks exposed by storing them.
Compliance with standards and regulations is a key requirement for organisations participating in the CDR framework. That means non-bank lenders will automatically adhere to industry standards and guidelines to ensure data security, limiting exposure to malicious activity.
Data protection measures include encryption, access controls, and secure data storage practices to safeguard sensitive information. The CDR framework also imposes ongoing monitoring and auditing of databases, securing consumer data by increasing the chances of discovering risks and losing integrity in datasets.
In summary, CDR is more than a compliance cost to non-bank lenders. It is the next step to increase business competitiveness and protect businesses and consumers in Australia. CDR is about giving consumers peace of mind when they transfer personal data online and giving them control over their vulnerable data.
As CDR continues to roll out, we anticipate a stronger, more protected ecosystem in which organisations, CDR solution partners, and customers are building collectively towards a safer digital economy.
There is much to learn from other industries in preparation for the legislation. However, the reality is that non-bank lenders should consider adopting CDR solutions regardless of the government timelines. CDR will be a reality and the sooner they can be ready and start benefiting from the advantages of data and insights to protect and boost their business, the greater value they will get for their investment.
In today’s fast-paced financial world, lenders and brokers face the constant challenge of providing quick and accurate financial assessments to banks to process loans. Although core lending decisions often rely on comprehensive Consumer Affordability Reports, banks still require a traditional bank statement as part of the supporting documentation. Basiq’s new Bank Statements product is a tool that complements our existing insights affordability solution, offering a streamlined way for financial assessments to be shared with banks.
Traditionally, obtaining these statements involves a cumbersome, manual process that can delay decision-making and frustrate both lenders and customers alike. This need for speed and precision in financial assessments highlights a critical gap in the current tools available to lenders.
Understanding the pain points
Inefficiency: Traditional processes for retrieving and verifying bank statements are notoriously slow and can lead to significant delays in loan approval.
Lack of standardisation: Each bank may have different formats and data availability, complicating the assessment process for lenders who deal with multiple banks.
Compliance and accuracy concerns: Ensuring that the bank statements are compliant with regulatory requirements and accurately reflect the customer’s financial status is paramount, yet challenging due to varying data quality.
Bank Statements; a Basiq Insights solution
To address these industry-wide challenges, Basiq’s Bank Statements innovate on how financial assessments are conducted and shared with banks. Bank Statements compliments our existing Insights Affordability solution, providing a seamless and efficient method for generating accurate, compliant bank statements for lenders.
Key Features of Basiq’s Bank Statements
Access via API or our no code dashboard: Basiq’s Bank Statements can be generated through two convenient methods: via our robust API for seamless integration into existing systems, or through our intuitive no-code dashboard, which allows partners to generate and download statements in a PDF or JSON format without any technical expertise.
Single account focus: Tailors statements for individual or joint accounts while presenting details clearly and compliantly.
Custom date ranges: Enables customisation of the statement period by allowing users to easily select how far back they want to go, with the ‘To Date’ automatically set to the date the account was last refreshed to ensure the data is timely and relevant.
Logical running balances: Calculates logical running balances based on the transaction order, providing a comprehensive financial overview even when CDR data lacks a running balance.
Accreditation and Branding: Includes the logo and accreditation details of the institution, enhancing trust and credibility in the statements provided.
Basiq’s Bank Statements is an exciting step in the journey towards making financial processes more efficient and less burdensome for lenders. By addressing the key pain points in traditional bank statement processes, it enhances both the speed and quality of financial assessments, empowering our customers to make faster and more informed lending decisions.
Developer Resources
Explore our Basiq developer resources to understand more how you can integrate bank statements into your solution.
The Consumer Data Right (CDR) in Australia has recently undergone significant updates, especially with the introduction of Business Consumer Disclosure Consent. This new form of consent broadens the horizon for business consumers, allowing them to share their CDR data with a wider array of service providers, beyond the traditional “Trusted Adviser” list. This list initially included professionals such as accountants and lawyers but now extends to include service providers like bookkeepers, finance brokers, insurance brokers, and business coaches.
So what’s the TLDR around business consumer consent?
Getting straight to the point, the new CDR updates include:
Introduction of Business Consumer Disclosure Consent: Expands data sharing options for business consumers, facilitating sharing with a broader range of third party service providers.
Greater Flexibility with CDR Data: The V5 Rules update permits data sharing with software applications used for financial administration, offering substantial benefits for service providers and small businesses.
Encouraging Open Banking Adoption: Tailored for “business consumers,” this update opens up new opportunities for sharing financial data, crucial for accessing various funding options.
So what are the benefits for service providers?
Expanding Data Sharing Capabilities with less legal requirements: Service providers are able to access valuable CDR data and use it based on their existing business agreements without being bound by CDR rules.
Streamlining Financial Operations: With access to a broader range of applications for financial administration, businesses can streamline operations such as payroll, invoicing, and more.
Facilitating Access to Funding: The ability to share bank statements with finance brokers more efficiently opens up a plethora of funding options for businesses.
Business Consumer Disclosure Consent via Basiq’s consent UI
The recent updates to the CDR, present a new opportunity for businesses to engage in data sharing. Basiq’s consent UI has been enhanced to accommodate these changes, ensuring that businesses can leverage our platform to share financial data with a broader array of service providers. This enhancement is integrated into our existing consent UI, ensuring that the user experience remains consistent and intuitive.
So let’s take a closer look The service provider Piper is wanting to collect business account details from a customer so they can offer a better service for their customer. They have integrated with Basiq to use their consent UI solution to allow their business customers to securely connect and share their bank account details in order to speed up this process and reduce manual processing.
The customer is met with a pre-consent screen within the piper application.
When they agree to continue they are taken to Basiq’s consent UI flow to facilitate the secure access to account details through a relevant financial institution.
The user is presented with details on; who has requested them to share the data (piper) and who is securely collecting it on Piper’s behalf (the ADR – Basiq), what details are being collected, for what purpose and for how long this consent will be valid for.
The Basiq consent UI simplifies the complex and verbose consent flow established by the ACCC and DSB CX (Customer Experience) guidelines. Our focus has always been to strike the perfect balance between compliance with the Consumer Data Right (CDR) regulations and offering an intuitive, user-friendly experience that maximises conversion rates. It aims to:
Reduce Drop-offs: By simplifying the consent flow, we aim to decrease the likelihood of users abandoning the process.
Increase Transparency: Users are well-informed about the specifics of the data sharing agreement, fostering trust and confidence in the process.
Maximise Engagement: A streamlined and user-friendly consent process encourages higher engagement rates, benefiting all parties involved.
The updates to Australia’s Consumer Data Right (CDR), featuring Business Consumer Disclosure Consent, significantly broaden the scope for financial data sharing, enhancing operational efficiency and financial management for businesses. The integration of these updates into the Basiq consent UI simplifies the data consent process, ensuring compliance while optimising user engagement. It enables service providers to offer more tailored solutions, streamlining operations and reinforcing trust in data sharing.
As open banking evolves, Basiq continues to innovate, empowering clients and their customers to maximise the value of their financial data.
Resources Have a read of our developer documentation to understand how you can get started with BCDC.
The closure of more than 1.4 million superannuation accounts in 20231, accompanied by disbursements exceeding $58 billion1, creates ample opportunities for exploitation by fraudsters. Manual methods employed for verifying bank account information are not only time-consuming but also prone to errors, providing openings for fraudsters to gain access to these substantial funds.
Unauthorised access to Superanuation funds
Incidents of identity theft further contribute to fraudulent activities, enabling unauthorised access to superannuation accounts. The prevalence of data breaches over the last few years, leading to the exposure of personal and financial data, offers fraudsters the necessary information for the manipulation or misuse of superannuation accounts.
Armed with this stolen identity data, perpetrators are able to assume the identity of their victims, navigating past security protocols to gain unauthorised access to superannuation accounts. Once inside, they are able to execute unauthorised withdrawals of substantial sums of funds.
As criminals evolve in their strategies, the urgency to fortify the security measures within the superannuation sector becomes increasingly apparent.
The use of Open Banking
Connect by Basiq offers a comprehensive solution to fight fraud through real-time bank account verification, ensuring that superannuation withdrawals are seamlessly transferred to the intended recipients. Basiq streamlines the account verification process through secure Open Banking authentication, eliminating the need for consumers to disclose sensitive login/password information. Members initiating fund withdrawals online are simply redirected to the website/app of their nominated bank account, creating a secure and user-friendly experience while eliminating traditional steps of asking for bank account details.
TelstraSuper has embraced Open Banking to mitigate the risk of fraud. By leveraging Open Banking, TelstraSuper validates member bank account information swiftly and securely, facilitating faster transactions without the need for cumbersome hard-copy documentation.
How does it work?
Step 1 – Member opts to transfer funds into their bank account
Step 2 – Member verifies by logging into their bank account
Step 3 – Once their bank account is successfully verified and connected, the amount to be withdrawn can be processed
Other benefits of Open Banking for Superannuation
Connecting a user’s bank account extends beyond verifying the account for transferring Superannuation funds. Financial data retrieved through the member’s various financial institutions helps create a comprehensive financial picture. Such insights enable financial advisors to provide more accurate and tailored advice, enhancing the overall financial guidance provided to superannuation members.
In addition, financial data can be used to help improve member engagement. By integrating a member’s financial data from different institutions with their superannuation data, a consolidated view of their net wealth can be created. This consolidated view allows for the development of user-friendly tools like dashboards and real-time alerts, helping members stay up to date and engaged with their financial journey and goals.
1Based on analysis from publicly available information on superannuation funds and administrators
Looking at your banking app, what was the last purchase you made? Depending on your bank, you might see the:
merchant name (maybe even their logo?)
amount spent
time of purchase
geographic location
What you don’t see is the refinement process the transaction data goes through before it’s displayed. This is called data enrichment. It takes the messy raw transaction data and turns it into clean descriptions by adding the merchant’s identity, location and categorisation details (as seen below).
Let’s go behind the scenes and explore how we turn data into insights using Basiq Enrich.
The data enrichment process
Enriching banking data via the Basiq platform is a four-step process:
Data access
Data tagging, cleaning and tokenisation
Data enrichment
Machine Learning and final output
Let’s go over each in more detail.
Step 1: Data access
The first step is accessing a customer’s transaction data. To do this, customers consent to securely link their bank accounts using Basiq Connect.
Step 2: Tag, clean and tokenise
Once the raw banking data is collected from a user’s account, transactions are separated into debits or credits
Debit
Bank fee: A fee incurred by the user from their bank e.g. ATM withdrawal fee
Payment: Payment made to a merchant
Cash withdrawal: Funds withdrawn via an ATM
Transfer: Funds transferred to an account
Loan interest: Interest charged on a loan account
Credit
Refund: Funds returned to account due to refund
Interest: Interest earned
Transfer: Funds received from an account
Loan repayment: Loan repayment credited to a loan account
Once transactions are identified, the Basiq platform uses the transaction metadata to clean and standardise the data ready for enrichment. Below is an example of this process using a purchase from energy provider, Momentum Energy.
Unfortunately, there is no consistent format for transaction data across banks, so standardisation is a crucial step. For example, the image below illustrates how a transaction with footwear retailer, Tony Bianco, is returned from four different banks. To meet this challenge Basiq maintains a database of transaction description patterns by bank so enrichment can be customised depending on the institution.
Step 3: Data enrichment
Once tagged, cleaned and tokenised, the Basiq platform enriches the payment data by searching for a match in our curated merchant database which includes the identity, location and categorisation details.
When it comes to categorisation, we provide five levels of categorisation enabling greater granularity and richer insights. This includes four levels of ANZSIC categorisation (‘Division’, ‘Sub Division’, ‘Group’ and ‘Class’) and an additional ‘Sub Class’ using Basiq’s unique categorisation database.
Step 4: Machine Learning and final output
In our enrichment process, when a transaction cannot be initially categorised and enriched, our advanced machine learning model intervenes. This model leverages additional data sources, meticulously analysing transactions to fill any gaps that might remain after the initial steps.
Our goal with this approach is to ensure near-perfect accuracy in the data output. What sets it apart is its dynamic learning capability. With each transaction it processes, the ML model evolves improving its efficiency and accuracy. After the data has been enriched the process is complete and it’s ready for output – like your banking app.
Basiq Enrich transforms transaction data from banking apps into clear insights. How? By securely accessing transaction data (with permission) and applying magic—tagging, cleaning, and enrichment across each transaction using our vast merchant database and advanced machine learning.
Our goal? To make your financial data easy to understand and insightful. With Basiq Enrich, you don’t just see numbers and codes; you see your spending story unfold. It’s all about clarity, insight, and helping you make sense of where your money goes, making your banking experience not just informative but genuinely enlightening.
Want to know more?
Check out how Basiq customers are using Enrich; PokitPal and TaxTank.
This year, Australia’s Consumer Data Right (CDR) is expanding to include the non-bank lending sector. Specific Non-bank Lenders will be designated as ‘Data Holders’ within the CDR framework, requiring them to implement systems to facilitate consumers in being able to transfer their data to accredited third parties.
This builds upon the designations in the Banking and Energy sectors, where Data Holders are already operational, allowing consumers to effectively transfer their data.
November 2024 marks the first milestone for Non-bank Lenders. So what do Non-Bank Lenders need to be aware of?
Quick recap
The Consumer Data Right (CDR) is an economy wide designed to empower consumers with greater control over their data. It facilitates the secure sharing of data, currently housed in various organisations, with third parties in taking up new services. Banking was the first implementation of the CDR, commonly known as Open Banking, allowing consumers to consent to sharing their banking data with accredited third parties. For more detailed information on Open Banking, refer to Basiq’s definitive guide.
Following Banking, the Energy sector adopted the CDR and soon, Non-bank Lenders will join this initiative. Presently there are over 90 Banks and Energy providers acting as data holders. To see the complete list.
Which Non-Bank Lenders must serve as Data Holders?
Treasury has delineated two categories of providers:
Initial provider: A non-bank lender that on the commencement date has over $10 billion in loans/leases and has averaged over $10 billion for the preceding 11 months.
Large provider: A non-bank lender that on the commencement date has over $500 million but less than $10 billion in loans/leases, averaged over $500 million for the preceding 11 months, has more than 500 customers.
What types of Non-Bank Lenders does it apply to?
Some examples of organisations it applies to include:
Mortgage lenders
Consumer finance companies
Buy Now Pay Later (BNPL) providers
Leasing and hire purchase providers
Marketplace lenders
Payday lender
Peer-to-peer lenders
Salary advance providers
What are Data Holders required to do?
Data Holders must be authorised by the ACCC, fulfilling specific criteria for data security, privacy, and technical capabilities. The implementation of robust security measures, such as encryption and access controls is required to safeguard data. Privacy compliance is crucial, ensuring data use aligns with relevant privacy laws.
Data Holders are obligated to adopt technical standards to facilitate seamless data sharing across entities within the CDR ecosystem. This involves establishing a consent management framework to obtain and manage consent from consumers.
Furthermore, ongoing regulatory oversight requires Data Holders to submit regular compliance reports to the ACCC and promptly address any inquiries and issues that may arise.
What are the key dates?
What is a complex request? A “complex request” under the draft rules is a consumer data request that:
Is made on behalf of a secondary user of the consumer
Relates to a joint account or a partnership account
Is made on behalf of a non-individual CDR consumer whose authorisations are handled by a nominated representative
I’ll be required to be a Data Holder, what should I do?
While providing access to consumer and product data via APIs seem straightforward, the process of becoming a Data Holder is a complex undertaking. Beyond initial requirements, there are continuous obligations related to regulatory changes, maintenance and reporting. Based on feedback from existing Data Holders in the banking sector, it’s prudent to consider engaging a Partner with the requisite expertise, experience and knowledge.
Given the urgency and complex requirements, Non-bank Lenders falling under the scope of becoming a Data Holder should take proactive steps in initiating their CDR implementation projects. Here are our recommended actions.
Step 1: Requirements and Timing Familiarise yourself with what’s required and “go-live” deadlines
Step 2: Engage a Partner Work with a Partner that can help you navigate the complex build and maintenance requirements
Step 3: API development Start building the internal API layer to surface Users, Accounts, Transactions – needs to be done regardless of whether you engage a Partner or not.
We are proud to announce the launch of our improved affordability solution – Basiq Insights. Leveraging a variety of data sources including Open Banking, our uplifted Insights solution offers a holistic approach to financial data analysis and decision making in the lending industry by bringing together the power of Basiq’s API with the simplicity of a no-code dashboard.
Navigating the complexities of modern lending
In today’s rapidly evolving financial landscape, lenders face a multitude of challenges that can hinder their efficiency and effectiveness. From the intricacies of regulatory compliance to the need for technological agility, these challenges demand innovative and adaptable solutions. Basiq Insights emerges as a pivotal tool in addressing these complexities. Let’s explore some of the key challenges in the lending space and how Basiq Insights provides effective solutions:
Manual Assessments and Accuracy Issues: Automated solutions reduce the reliance on manual methods, enhancing accuracy and security.
Disjointed Customer Experience: Streamlined data processing improves the customer journey in loan applications.
Navigating Regulatory Obligations: Compliance becomes more manageable with automated data handling and open banking integration.
Overcoming Technological Limitations: The combination of API and no-code dashboard ensures that lenders are not left behind due to outdated tech stacks.
Screen scraping regulations: With Treasury considering the ban of screen scraping of financial data from bank accounts. Lenders using decisioning platforms that solely rely on screen scraping will be left without access to their customers’ financial information as banks move to use Open Banking.
Powerful APIs for bespoke decisioning Basiq’s API forms the backbone of the affordability solution, allowing lenders to delve deep into financial data with enriched transaction details, ensuring precise and reliable insights tailored to their specific needs.
It is an unparalleled tool, empowering you to create bespoke decision making for your customers that align with your specific use case. It boasts the most comprehensive library of data points, metrics and categories available in the market, enabling you to go beyond using templated reports from conventional providers.
Basiq’s No-Code Dashboard – empowering teams beyond development The no-code dashboard revolutionises the experience for non-developer teams. Designed for seamless integration with the API or as an independent solution, it simplifies interaction with Basiq’s robust reporting API. The dashboard provides access to data aggregation, enrichment, and insights, all without requiring specialised coding skills or the development of custom applications. Its user-friendly interface bridges the gap between complex data handling and operational ease, enabling you to focus on creating value for your end users.
Key features of Basiq Insights: Consumer Affordability reporting solution
Across the Basiq API and Dashboard you can access a range of features and capabilities.
Access to data from CDR, Web connectors & Uploads: Future proof your solution by accessing web connectors (screen scraping) and Open Banking via a single platform. Be prepared to make the switch when banks transition away from screen scraping and leverage even more data insights with Open Banking.
Extensive data library: Includes thousands of data points, over 60 groups, 50+ metrics, and more than 500 merchant categories, continually updated for comprehensive reporting.
Comprehensive transaction data access: Offers access to over 12 months of transaction data from various financial institutions, providing a detailed view of a customer’s financial health.
Advanced data categorisation: Features enriched transaction details, including merchant, location, and category, with expenses categorised into more than 500 categories based on ANZSIC classifications for detailed spend behaviour analysis.
Customisable reporting: Allows for the generation of customised reports to meet unique decisioning criteria using a growing library of data points and metrics.
Enhanced decisioning tools: Includes a continuously expanding set of groups and metrics to refine decision-making processes.
Consolidated multi-account reporting: Integrated consent UI enables consolidated reporting across multiple bank accounts, allowing for individual or combined reports for multiple applicants.
Predefined Risk Flags: Benefit from our extensive library of risk flags, meticulously designed for comprehensive decisioning. These predefined flags are instrumental in identifying gaps in financial information, ensuring thorough and accurate assessments in your lending processes.
Powerful enrichment overlay services: Utilises machine learning for transaction cleansing and categorization, enhancing data quality for deeper insights.
Export options: Provides the ability to export reports in PDF or CSV formats for record-keeping and detailed transaction analysis.
Bank statement export capability: Enables easy export of bank statements to support lending decisions.
Transforming lending with Basiq Insights
Basiq Insights stands as a beacon of innovation in the financial sector, particularly in the realm of lending. Seamlessly blending the technological prowess of its API with the accessibility of a no-code dashboard, this solution not only meets the current demands of the lending industry but also anticipates its future needs.
Basiq Insights is not just a tool but a comprehensive solution, tailored to meet the diverse needs of the modern lending landscape. With its array of advanced features, it offers unparalleled depth and breadth in financial data analysis and reporting across its API and No-Code Dashboard solutions. Here’s a look at some of the key features that make Basiq Insights a leader in its field:
Enhanced Loan Processing Efficiency: Automation and real-time data access lead to faster and more accurate loan decisioning.
Data Enrichment and Classification: Enhanced transaction details for precise financial assessments.
Customer Consent Management: Ensuring data privacy and compliance.
Tailored Financial Insights: Customisable options for specific lending needs.
Superior User Experience: A streamlined and intuitive interface for both lenders and their customers.
Automated Data Aggregation and Insights: Streamlines operational processes.
Compliance with Regulations: Particularly beneficial in the Australian banking sector.
Improved Mortgage Pre-Approval Processes: Ongoing consent and open banking facilitate quicker pre-approval renewals.
The robust features underscore Basiq’s commitment to driving efficiency, accuracy, and user satisfaction. More than just a tool, Basiq Insights is a strategic ally for lenders, empowering them with the data and insights needed to navigate the complexities of the financial landscape. With a forward-thinking approach to data privacy, regulatory compliance, and user experience, Basiq Insights is setting a new standard for consumer affordability solutions. As the lending industry continues to evolve in this digital age, Basiq Insights is undoubtedly leading the charge, paving the way for smarter, faster, and more customer-centric lending practices.
Embrace the future of lending with Basiq Insights, where innovation meets efficiency and customer satisfaction.
Well, a whirlwind few days in Melbourne for Intersekt23. This year I thought I’d put some of my thoughts down on paper to share. Tried to keep it short but there was so much content ?
Scraping v CDR
The CDR sparked significant discussions over the course of two days. There was no mistaking the significance when I saw The Hon. Stephen Jones take the stage – it was evident he was about to announce something. True enough, the unveiling of a discussion paper advocating for the banning of screen scraping lived up to the anticipation. Given his previous discussions on the matter, the release was not unexpected, making it only a question of timing.
This indicates promising progress ahead. The Government views the CDR as a tool with the potential to significantly decrease scams and financial crimes, which currently costs the Australian economy nearly $3 billion a year. His words were very clear… “Screen scraping runs counter to the goals of CDR.” While complexities will arise for organisations currently using scraping, embracing the CDR is the optimal path for consumers seeking a secure and trustworthy method to share their data.
However, expediting adoption entails more than just prohibiting scraping. Given its nature as a “consumer” data right, it’s logical to assume we should have a means to measure the number of consumers who are actively sharing their data via the CDR. Presently, our metrics encompass data holders and their up time, but the absence of information regarding the volume of consumers engaging with the CDR is perplexing. As Peter Drucker says, “if you can’t measure it, you can’t manage it,” so what gives?
Then there are the challenges organisations encounter trying to get accredited, whether they’re going through direct channels or via access models. On one hand, there’s an understanding of the necessity to safeguard consumers, but on the flip side, certain requirements placed on organisations such as “adequate” insurance requirements can often lead to them being excluded from the CDR ecosystem. Finding the right balance is crucial to ensure the ecosystem’s growth and, ultimately, to increase the number of consumers who feel comfortable sharing their data.
“We need more CDR use cases!” Really?
A prevalent theme I heard across numerous sessions, emphasised the need for “more use cases” beyond just Lending, Personal Financial Management (PFMs), and Product comparison. ? Perhaps this sentiment arises from a lack of awareness, but upon closer examination of organisations already using CDR Open Banking, you come to realise that we in fact have a number of use cases!
Climate change: calculate carbon emissions from bank transactions – Greener
Property management: tools for property managers – PropertyMe
Collections: create payment plans to optimise repayments – Panthera Finance
Charity: round ups on everyday transactions to make a donation – PokitPal
Recycling: account verification to deposit funds – TOMRA
Accounting: software for accountants to manage their client’s books – Olivs
Beyond that, the use of CDR data for Lending can be extended beyond the credit application process. This includes using the CDR to understand a customer’s financial position to provide more contextually relevant products, and monitoring for changes in financial position that could indicate financial hardship.
And as Jake Osborne from Lendela said in his “Fireside Chat: CDR and Life Events,” … “while we often think about building new products, CDR can also be used for improving processes.”
Many of the organisations currently using Open Banking do so via the CDR representative model through intermediaries who are Accredited Data Recipients. If you’re looking for use cases, have a look at who these organisations are.
Consent is a central figure
Scott Farrell from King & Wood Mallesons in his talk on “Fintech Next: People, Value, Trust” elaborated on what he saw as the “why” of CDR. He broke it down into 4 main constructs that included Competition, Innovation, Financial Inclusion and Consumer Protection. In my mind this was a simple and clear way to articulate it. He continued by emphasising that “information” and “money” should be considered the same thing. I guess the saying “time is money” can also be extend to “information is money”. So being able to control your own information and knowing who and how it’s being used should be important to all consumers. Just look at all the social media platforms we use like Facebook, Instagram, and Twitter (errr “X”) – do we know how our data is being used? And how much money is being made off our information?
As you delve deeper, the significance of consent in relation to information becomes increasingly apparent. This point was highlighted during the panel discussion on “The Convergence of Data, Identity, and Payments,” featuring Damir Ćuća (Basiq), Nathan Churchward (Cuscal), Clare Rhodes (Identitii) & Josh Read (IDVerse).
The three fundamental components – Data, Identity and Payments – are integral to any financial services application we engage with. But these are often looked at in silos which is even more pronounced given there are 3 separate regulations/industry initiatives impacting these areas – CDR for Data, NPP for Payments, and TDIF for Identity. Consumer consent serves as a key foundation. Establishing consent as the interconnected layer that links these three areas holds utmost importance.
But what does it mean for the consumer? Different consent processes for different processes in the same app? That’s not an interconnected experience. For example when PayTo proliferates, there will be consumer friction. What’s the experience on an app when (1) I need to verify myself (one consent), (2) I want to share my data via CDR (second consent) and then (3) I want to set up a payment with PayTo (third consent)? Let’s think about the consumer in all of this. Can I just give you consent once?
If as Scott Farrell said, information is money, give me a good digital experience when it comes to managing my information! And when Scott was asked what he would do if he could wave a magic wand on the CDR and do whatever he wanted, his answer was … “Weave digital Identity into the CDR and Payments. That’s the missing pillar.” And we come full circle. Data, Payments and Identity.
Right product, right channel, right time
As a marketing practitioner the concept of a consumer getting the right product, through the right channel and at the right time is the holy grail. I talk about this often in my teaching at Sydney University and I’ve often referred to it as the “golden triangle”. Get it right and you’ve hit the mark. Easier said than done. You could have the best product, but if it’s not available in the right channel and at the right time, it’s meaningless.
The session from Visa’s Matthew Wood on “Emerging Payment Trends in Asia Pacific” highlighted how the lines of finance are blurring. Product alone is no longer enough, it’s about distribution. Embedding finance in customer journeys is critical for success. When it comes to e-commerce, social media has played a big role in driving take up – think influencers, think embedded stores within social media platforms. The next phase? “Commerce will have its ChatGPT moment”!
The panel on “How Open Data is Shaping the Future of Personal Finance” talked about a similar theme with respect to context. Jason Leong (PocketSmith), Simone Jemmett (Experian), Dan Jovevski (WeMoney) & Adam Gulden (Moneythor) talked about the importance of contextual relevance when it comes to personal finance. If you’re going to make a decision about your personal finances, it has to be contextually relevant – right time, right place, right moment. That’s the “value exchange”. If you get this right it will lead to better engagement and uptake. That to me is the “golden triangle”.
A few other things I found interesting
AI & Data Hacks AI. Still mind boggling what is possible. In the session on “Data Hacks to Banking Collapses: What Have We Learnt in the Last 12 Months,”Alisdair Faulkner from Darwinium said that “any digital signal a human creates can be accessed and replicated by AI. Voice. Keystrokes. Visual. This is scary!? Dan Draper from CipherStash ended the panel with “Shit happens. Don’t think it won’t happen to you?”
Ethics Judo Bank’s Joseph Healy in the session on “Ethics in Fintech”talked about the need to be a values driven organisation. Numerous fintechs set out their their journey with a purpose and set of values in mind, but as they grow, the challenge becomes hiring the right people and consistently viewing decisions through the lens of these values. This becomes even more critical when business choices could potentially impact those very values. From my perspective having the right leaders who share the same values play a critical role in maintaining accountability and staying steadfast amidst external influences.
DIY or Partner? In the session with James Read from Send Payments on “How can Fintechs unlock success? Innovate of Integrate”he talked about the challenge of whether you should build or partner? This can be tied what your exit strategy is. If you’re aiming for a trade sale then maybe innovating and owning your own stack is more important. But if you’re aiming for an IPO then maybe partnering and acquiring customers rapidly is the focus. In that same session Imelda Newton from Tic:Toc looked at it from a different lens. You also have to consider internal development teams wanting to build things themselves but P&L owners wanting to derisk delivery and potentially wanting to involve 3rd parties to some degree. Getting that balance right can be challenging.
Digital Identity Lastly, a notable facet of digital identity that caught my attention was the discussion panel titled “Digital Identity: Defining Excellence and the Path Forward.” During this panel, Jason-Urranndulla Davis from Hold Access delved into scenarios where individuals face a significant challenge due to a “lack of identity” resulting from insufficient documentation. This particularly impacts First Nations people and those with limited documentation, posing substantial barriers to accessing essential services. Thus, the question arises: How can we ensure that promoting inclusivity remains a central focus when implementing any changes to the 100-point identity verification system which is currently outdated and not fit for purpose?
The After party
And #Intersekt23 wouldn’t be complete without Basiq’s After Party. Thanks to everyone who attended. It’s always great to have the opportunity to bring people together. Here’s the photo gallery from the night.
