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 enables Mastercard to unlock the potential of open banking for more Australian businesses and consumers, as it has in the US and Europe, and means the company’s partners do 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 choice.

“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,” Mastercard division president for Australasia, Richard Wormald said.

“The more organisations 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.”

Mastercard research shows that almost one-third (32%) of Australian consumers believe identity security is the biggest barrier to the adoption of open banking. This solution promises a seamless, secure financial future.
 
“The expansion of open banking promises to catalyse 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,” Wormald added.

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 behaviour.

Mastercard’s automated and predictive analytics and expanded data sources help 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 customised underwriting models.

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.