HomeMedia & ResourcesMedia ReleasesCOBA supports Open Banking but timetable a concern

COBA supports Open Banking but timetable a concern

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COBA today voiced its support of open banking for consumers and competition but has questioned the tight timetable announced for smaller banking institutions.

“Open Banking has enormous potential to offer consumers greater choice and convenience and support a more competitive banking market,” COBA CEO Michael Lawrence said.

“But the timetable announced for smaller ADIs is unnecessarily demanding.

“The benefits of Open Banking can be achieved without mandated participation of all players, but with the participation of the major banks.

“The four major banks have around 80 per cent of the home loan, deposits and credit card markets in a banking market the Productivity Commission has described as “a strong oligopoly with a long tail of smaller providers”.

“Smaller players need certainty about the cost of implementing open banking to make informed investment decisions in their businesses.

“Without the regime rules in place, the cost to implement is difficult to estimate.

“There is an opportunity cost of investment decisions for smaller players, including capital-constrained customer owned institutions.

“We also have concerns about how customers data will be protected and suggest a cautious approach given the potential risks for consumers. 

“Customer owned banking institutions have a built-in incentive to participate in Open Banking as challengers to the dominant players.

“There are customer owned institutions who are already preparing for the Open Banking launch, which shows the industry’s capacity to put customers at the centre of decision making and act without the need for mandatory deadlines.

“Our sector’s willingness to deliver customers the benefits of technological innovation is also demonstrated by its strong ‘day one’ participation in the New Payments Platform and widespread availability of digital wallet applications such as Apple Pay, Android Pay and Samsung Pay.

“We look forward to continuing to work with the Government on an Open Banking regime that acknowledges the issues faced by smaller institutions.”

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For more information please contact:

Daniel McDougall, Senior Manager – Media and Communication

02 8035 8444 or 0407 637 541, This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Customer Owned Banking Association is the industry body for mutual banks, credit unions and building societies.  See www.customerownedbanking.asn.au

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Media Contacts

Mick Gibb
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