Open banking in Australia has reached an inflection point, with usage surging and optimism rising across the financial services sector.
Frollo’s The State of Open Banking 2025 report, released today, reveals adoption has accelerated even as challenges remain.
“A more focused direction is taking shape,” Thrassis said. “Two things are clear: there is much to be hopeful about, and there is still a lot of work to be done.
“Open banking is no longer a theory. It’s working. Momentum is building, and we must keep moving. More importantly, we must collectively move from viewing the CDR as a burden to seeing it as the national asset it truly is.”
The Consumer Data Right (CDR), introduced in 2019, underpins open banking by allowing consumers to securely share financial data with accredited third parties such as brokers. While rollout has faced hurdles like complex regulations and low awareness, recent broker-focused products have made adoption easier and safer.
Adoption is growing rapidly across the industry, with more than 1.88 billion API calls in the past 12 months – more than double the previous year. Major banks including CBA, Westpac, and NAB are now actively integrating open banking.
The ecosystem has also expanded to include a growing number of connected accounts, accredited data recipients, and participants.
The report highlights that open banking is already delivering tangible benefits for consumers. Australians using money management apps are saving an average of $330 per month, with account balances rising 13% and savings growing 21% after just three months.
“Open banking gives people the power to choose what to share and who to share it with,” said Kris Davant, head of product at Frollo. “We’re seeing how this sense of control can improve financial planning conversations, particularly when people are just getting started or going through a life event.”
In the $3 trillion mortgage market, brokers are at the forefront of open banking adoption.
With brokers handling more than two-thirds of home loans, the technology is reshaping customer interactions and efficiency.
Tony Carn, chief customer officer at NextGen, called the shift transformative:
“It’s a generational game changer for the mortgage industry,” Carn said. “Open banking helps brokers take a much more proactive role in helping people get fit for finance, removing administrative barriers and allowing more focus on meaningful customer relationships.”
The impact is measurable:
Despite progress, consent authorisation failures remain a significant barrier. Nearly 30% of consent requests fail during bank authentication, with some banks recording failure rates as high as 31.5%.
“Out of more than 11,000 Frollo users who shared feedback, over 10,000 identified failed consent as the primary issue,” Thrassis said. “Eighty-eight per cent of failures are due to login issues, one-time passcode problems, or technical errors.”
Still, the government’s formal CDR reset is helping. Treasury-led consultations have expanded CDR to non-bank lenders, improved consumer consent experiences, and streamlined processes.
Yet concerns linger around screen scraping.
“The government proposed banning screen scraping ‘in the near future’ back in 2022, but no formal action has been taken,” Thrassis said. “Without clear government policy, we’re in a grey zone that creates confusion for consumers and undermines the CDR’s core security promise.”
The report concludes that early adopters are already seeing success, and others will need to follow to remain competitive.
“It’s not a matter of if, but when. This report contains plenty of reasons to stay optimistic – and, I hope, a renewed sense of energy for the road ahead,” Thrassis said.
The next phase of open banking will focus on action initiation, agentic AI integration, and clearer government policy. With momentum accelerating, more financial institutions are recognising the benefits of being both data holders and recipients.
“The CDR sets Australia apart and helps people take better care of their money,” Thrassis said. “More importantly, we must collectively move from viewing the CDR as a burden to seeing it as the national asset it truly is.”
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