FinTech Australia has responded to calls from banks and industry bodies to phase the implementation of Open Banking legislation by urging the government to resist such delaying tactics.

The consultation period for Australia’s review into Open Banking concluded last month, with the Australian Banking Association stating the Treasury should adopt a “phased approach” to including different banking products and calling into question the 12-month time frame for reforms.

Westpac Banking Corporation also responded to the consultation, backing calls for a phased approach to the inclusion of lending products.

However, FinTech Australia - which represents more than 220 financial services technology firms across the country - stated the first phase of the Open Banking regime should include both deposit and lending products (such as credit cards and mortgages) and stick with the recommended 12-month implementation timeframe.

It also suggested a formal role for the Australian Competition and Consumer Commission in order “to stop knee-jerk anti-competitive measures by banks”, along with a timeframe to be set for the introduction of pensions and insurance into Open Banking, after the first phase.

Peter Lalor, chief executive of personal financial assistance company MoneyBrilliant, commented: “Banks are trying to delay the introduction of lending products into an Open Banking regime, simply because these are the most lucrative areas of their business and because switching is easiest in credit cards and mortgages.”

He added: “We urge the Australian Government to hold the line and put Australia in a world-leading position with its Open Banking regime.”

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