Open banking: what is it and why should you care?


This topic is hotting up and making it into the (albeit fairly niche financial) news but it’s actually big news for consumers and coming to Australia - we wrote a blog about it and more recently an update on how it’s happening in Europe - would love to hear your thoughts/questions

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Do API’s open up security issues?
WIll our data be shared without our permission?

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Hi @psychsplash, very good questions! This is a topic we’ve been thinking a lot about recently (particularly given the current situation with Facebook and data security) and we’re working on a blog on the subject. Once that’s published we’ll post it here…

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Hi @psychsplash also thought you might be interested in this (sorry ahead of time - it’s AFR so behind firewall) but basically Westpac saying it’s going to cost a lot of money and time to make open banking secure - well, you could argue that ‘they would say that’ but it’s good to hear - I think both we and all the other banks have security top of mind on this - a lot of thought going into this everywhere which should bear fruit…


One of the things that attracted me to your brand, was the focus on adding customer value to banking. Instead of a static account, there are embedded tools to help me save, invest, monitor my spending etc. Whilst I can see that opening up API for other services to come in and enhance this further, my personal opinion is that mastering what Xinja can provide in the account is priority, at which stage I think members might be more open to the idea of having some of their data shared in order to open up new features. There would have to be a significant vetting process of the companies with which you would share data.


Hi Gareth - just to clarify - open banking is a WAY off! Xinja will be well advanced by the stage this becomes something we’re really working with and when we do get there, any partner we need to work with would need to enhance both the value we’re delivering customers and customers’ confidence in Xinja so don’t worry…our focus will always be helping customers make the most out of their money, and any integration that did occur would be as you say ‘significantly vetted’ plus any data sharing would - as open banking implies - be 100% the customer’s choice. Hope that reassures :slightly_smiling_face:


I think the possibilities are endless and I love the idea.

I’m currently a Monzo user here in the UK, although my main bank is still Barclays, I use Monzo for my disposable income and it’s great for budgeting. I have however recently signed up to TransferWise in preparation for my year in Australia, I want to take advantage of its borderless current account which offers cheaper forex transactions.

It would be nice if the open banking platform would allow me to take advantage of great features from multiple providers without having to sign up to multiple bank accounts. If I’m reading into open banking correctly, then this should be possible.


Hi Ben - open banking will effectively allow you to open accounts directly/immediately by allowing one bank to pass data to another through specific infrastructure/protocol - so yes - although the integration of multiple services through one platform is not open banking itself - something that would need to be there through one of the services your using (and something we are planning to build at Xinja.) Open banking still in fairly open stages in the UK and much earlier here…so not sure you’ll get any benefits from ob directly in your year here. Transferwise is great. And great that you’re coming down here! See you soon! :sunglasses:

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Cheers Cap’n

With developments like OB it’s a really interesting and exciting time to be involved in this scene I think.

If there’s a Xinja meetup on while I’m in Sydney, I’ll come through and see you guys.


Here’s a good post on open banking.


Hi Ben @two_seven - yes we are doing a meetup soon - when do you get here?


Yes this is a really clear piece - we linked to it in our blog actually - it’s dragging its feet a bit in the UK but I’m hoping we can (following them) move a bit faster here by learning from them. Xinja has put its hands up to be one of the first implementers etc. The fun part is going to be getting inventive with the data :ninja_emojis_pink_03::grinning:

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I won’t be in Australia until mid July, I’m flying into Perth first to do some of the west coast before I head east. I definitely want to be in Sydney for New Year.


DOH! Obviously didn’t pay enough attention when I was reading your blog. I can’t wait to see how the industry changes over time.

In a conversation with my step mother the other day about all this, she said words to the effect of not trusting any newer banks or systems because she know’s the names/brands of the established banks. It’s a shame that after all the banks have done in the past to defraud and rip off the everyday man/woman, that people still have trust in them through complacency. This is obviously a hurdle a new bank like Xinja will have to overcome, strategies required!

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It’s happening :tada:


Hey Ben @two_seven - agreed! and we have some :wink::wink: There is definitely a group of people who are ready to move, which is great for us, but most people are more likely to get divorced than change their bank account…deeply depressing :slightly_frowning_face::slightly_frowning_face:

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Open Banking could be the beginning of a new sharing economy with exponential potential for positive social impact that we haven’t even begun to imagine yet.

[Check out our presentation here!]


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Could also be a flop. Handy for people to move Mortgages, personally I don’t want banks seeing all my business beyond what is required. Banks are good at making decisions for themselves. Just my take.


Hi @Cavok -agreed - we are focused on how this is delivered in terms of customer consent (my data made accessible to whom exactly and for what purpose?) which is why we are suggesting there should be a register customers can use to keep track of whom they’ve given access to and to manage this. We think there will be multiple instances where it’s useful, but it needs to be controlled by customer rather than institution. Open banking will be more of evolution than revolution we think, and this is what appears to be occurring in the UK.

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Interesting article Captain about switching banks.

I think something that’s going to need to be in place here is a really very slick way that people can follow a guide to switching all their banking over to Xinja when the time comes.

No one strategy will be the silver bullet, but whoever can do it slickest will win.