The Australian Government has agreed to the recommendations of the Farrell review into Open Banking, sticking with the implementation timetable that was criticised by banks and industry bodies.

A statement confirmed that the government will phase in Open Banking with all major banks making data available on credit and debit card, deposit and transaction accounts by 1 July 2019 and mortgages by 1 February 2020.

“Data on all products recommended by the Review will be available by 1 July 2020. All remaining banks will be required to implement Open Banking with a 12-month delay on timelines compared to the major banks,” read the statement.

The Australian Competition and Consumer Commission will be empowered to adjust timeframes if necessary and will be consulting on draft rules, while the Treasury will be consulting on draft legislation in coming months.

The Australian Banking Association, alongside Westpac and Commonwealth Bank, had urged the government to delay plans for Open Banking and limit its scope to exclude lending products, citing high costs and security issues.

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.

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