Open Banking In Australia

In Australia, open banking is commonly used to describe the banking part of the Consumer Data Right.

The Consumer Data Right gives people more choice and control over how their data is shared. In banking, that means you can choose to share eligible data from a bank or financial institution with a provider that can use that data to deliver a service.

How open banking works under CDR

The official CDR site explains that the process starts through a provider's website or app. If you choose to share data, you give permission, complete an identity check with your existing provider (typically through a one-time password), confirm what data you want to share, and then data is securely transferred between providers.

The technology uses APIs, which allow data to be transferred electronically and automatically.

What you control

CDR consent requirements are designed to make the important details visible. The consent process must explain what data you are sharing, how it will be used, who can access it, how long access lasts, and how to manage or withdraw consent. CDR consents run for a maximum of 12 months and can be withdrawn at any time.

How Cove Money fits

Cove Money uses CDR bank connections through Fiskil. Cove Money is not an Accredited Data Recipient. It operates as a CDR Representative of Fiskil Pty Ltd, which is the Accredited Data Recipient that collects and discloses CDR Data on behalf of Cove Money.

That lets Cove Money provide a read-only view of connected accounts, balances, transactions, bills, cashflow, and spending patterns.

What open banking does not mean in Cove Money

Open banking does not mean Cove Money can move your money. Cove Money receives data on a read-only basis. It cannot make payments, move funds, or change anything in your bank.

It also does not mean Cove Money stores your bank login credentials. Cove Money's CDR Policy states that authentication and consent are handled through the CDR flow made available by your bank, Fiskil, and the CDR framework.

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This article is general information only and does not constitute personal financial advice. Consider seeking advice from a licensed adviser before acting.