Mastercard certified as Accredited Data RecipientFebruary 23, 2023 | Sydney, Australia
Latest milestone to bring simplicity, efficiency, and security to Australian open banking
Mastercard has been approved as an unrestricted Accredited Data Recipient (ADR) by the Australian Competition and Consumer Commission (ACCC), under the Consumer Data Right (CDR).
The accreditation will enable Mastercard to unlock the potential of open banking for more Australian businesses and consumers, as it has in the U.S. and Europe. The company’s partners will not need to secure their own accreditation.
Mastercard’s unique open banking capabilities offer Australians a convenient and secure way to share their financial data easily and securely with third-party financial services providers and utilities of their choosing. Mastercard’s move demonstrates its commitment to business and consumer financial health and inclusion as well as data responsibility, the backbone of its open banking and security approach.
“Open banking is set to transform the way consumers can connect with and control their data, in everything from budgeting and payments to investing and lending. The more organizations taking part in the open banking space, the better the outcomes for individuals. It enriches individuals’ data, affords them more choice and control over which products they select in an open, safe, secure and transparent manner,” said Richard Wormald, Division President, Australasia, Mastercard.
Giving consumers choice and control
Mastercard’s approach to open banking puts privacy and security at the core, ensuring that the data remains in the control of the consumer. Financial data has the potential to expand access to financial services that empower people to build financial habits that enhance their lives. Mastercard’s accredited solution will act as an enrichment service, more easily categorizing data to help customers make informed financial decisions.
With 32%1 of Australian consumers stating identity security is the biggest barrier to the adoption of open banking this solution proves invaluable for a seamless, secure financial future.
“The expansion of open banking promises to catalyze innovation across the financial services industry as next-gen services will fundamentally change consumers and businesses. Collaboration is key in delivering solutions and solving technical challenges that will help the industry connect and protect customer data. Those who lean into open banking and focus on developing differentiated propositions and capabilities will emerge as leaders,” concluded Wormald.
Global capabilities supporting business scale
Mastercard launched its first open banking connectivity in the UK and Poland in 2019. These efforts were with the addition of Finicity in 2019 and Aiia in 2020. The insights and expertise from these efforts are now being delivered to Australia.
Mastercard believes there are three significant ways open banking will change financial services for partners across Australia’s ecosystem:
- Open Banking for Payments: Using real-time bank account information permissioned by the consumer, Open Banking for Payments helps the payment originator — a merchant, a bank, a digital wallet, or payment service providers — assess a consumer’s balance and historical behavioral to offer choice, certainty, and a frictionless experience when moving money.
- Open Banking for Lending: Mastercard’s automated and predictive analytics and expanded data sources help to mitigate risk in both underwriting and servicing of consumer and small business loans. Consumer-permissioned financial data – such as income, employment, and cashflow – provide lenders insights to create customized underwriting models.
- Open Banking for Account Opening: Mastercard Open Banking is addressing account verification by stripping away friction points in the account set-up, onboarding, and funding process. It provides financial institutions new ways to verify account ownership and authenticate credentials, leading to accounts being opened securely within moments.
Mastercard provides rail-agnostic services and supports the entire payment ecosystem in Australia, going beyond cards and payments with value-added services while expanding the offerings for fintech services. Open banking is benefiting partners across the ecosystem to innovate with new and improved services for their customers and partners.
For more on Mastercard’s open banking solutions visit: https://www.mastercard.com.au/en-au/open-banking.html
About Mastercard (NYSE: MA)
Mastercard is a global technology company in the payments industry. Our mission is to connect and power an inclusive, digital economy that benefits everyone, everywhere by making transactions safe, simple, smart and accessible. Using secure data and networks, partnerships and passion, our innovations and solutions help individuals, financial institutions, governments and businesses realize their greatest potential. With connections across more than 210 countries and territories, we are building a sustainable world that unlocks priceless possibilities for all.