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Open banking is here and it’s charging full steam ahead. How are lenders and fintech’s using your shared data in this brave, new, data-fueled world?  

With everything that has gone on over the past two years, one of the nation’s biggest banking overhauls in recent memory has slipped under the radar. It is called ‘open banking’ and it aims to allow you to share your banking data easily and securely with your bank’s competitors to make it more convenient for you to switch banks when you think you have found a better deal on a financial product.  

For example, instead of spending hours and hours gathering documentation (such as bank statements, expenses, earnings, and identification documents) to refinance your home loan, you could simply request that your current bank sends the information across for you. But, like most things, it comes with a trade-off – you have got to share your banking data with the prospective lender, fintech or allied professional to make it happen. 

How Do They Use Your Data? 

Australian open banking provider Frollo has published the second edition of The State of Open Banking 2021, which surveyed 131 professionals representing banks and lenders, fintech’s, technology providers and brokers across the country. The report shows open banking data availability has accelerated dramatically.  

In the first 10 months of 2021, 70 banks started sharing consumer data and 14 businesses became accredited data recipients, including three of the four big banks. This is an increase from just five data holders and five data recipients in 2020. And more financial institutions are getting ready to jump on board.  

The industry survey shows 62% of respondents plan to use open banking data within the next 12 months, and 38% within the next 6 months.  

What Are They Using the Open Banking Data For? 

Well, the most popular uses can be grouped into three categories: 

1. Lending: income and expense verification is highly valued by 59% of survey respondents. 

2. Money management: multi-bank aggregation and personal finance management were highly valued by 50% of respondents. 

3. Verification: customer onboard (49%), identity verification (38%), account verification (34%) and balance checks (30%) were all highly valued. 

For Open Broking, Get in Touch 

It is important to note that open banking is not the only way you can make life easier on yourself when it comes to switching up financial products. That’s what we are here for! 

We are an open book and always happy to check whether you can apply for a better deal on your home loan somewhere else. And as you know, we pride ourselves on taking on most of the legwork, whether we are harnessing the power of open banking or not. So, if you would like to explore your options, get in touch with us today and we would love to help you out! 

Phone: 1300 855 022
Email: clientservices@zippyfinancial.com.au     


Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business.      

About the author:       

Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.       

Connect with Louisa on Linkedin.      

Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).    

Disclaimer:This article contains information that is general in nature. It does not consider the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This article is not to be used in place of professional advice, whether business, health or financial.      

If you’ve been thinking of applying for a mortgage, you may have spent some time preparing for the process. I’m guessing you’ve cut back on your non-essential spending, saved as much money as possible for a deposit, maybe even paid off that last little bit of credit card debt that’s been hanging over your head.  

You do all of this so you can present yourself as an excellent borrower to the banks. 

But have you thought about how your older debts might come back to haunt you? 

When Credit Cards from the Past can be a Problem 

Recently, I’ve had a couple of clients who were shocked to find that credit card debts from the past were getting in the way of a successful finance application. 

One client was hoping to secure a home loan. They had a squeaky-clean application that ticked all the boxes, as far as we were concerned. 

Serviceability? Check! Are current accounts all paid on time? Check! Enough income to service the debt? Check! 

Unfortunately, they’d failed to disclose late payments on a credit card from the past. 

Now, in this client’s defence, they hadn’t deliberately left his information out. It simply wasn’t on their radar, because the card had been closed for two years. They genuinely believed it wouldn’t be an issue, especially considering the effort they’d made to keep their finances on track ever since. 

But, as a result of this old credit card they’d pretty much forgotten about, their application was knocked back. 

Six-figure Income Doesn’t Mean Home Loan Success 

Another recent example was a couple who came to us for help getting a home loan. They’re both professionals on great incomes, pulling in more than $300,000 between them. Shouldn’t be a problem securing finance, right?  

They too ran into difficulty, thanks to a credit card from a few years back. While they’ve always had the cash available to make their repayments, the organisation wasn’t their strong suit.  

Busy lives and day-to-day distractions meant they’d missed a few payments, and their credit provider had shared this information with another major bank – the bank we’d approached for their mortgage. 

Here’s the thing. When we submit a finance application for a client, we like to be 99 per cent confident it will be approved. Why? Because every application you make, whether it be for a mortgage or a lounge suite on interest-free terms, means an enquiry on your credit file. And having too many enquiries on there is not a good look. It can even make getting approval in the future more difficult, which is the last thing you want. 

Not only that, it could mean you miss out on your dream home, because you now need to take the extra time to find a new lender, and another buyer with their finance pre-approved could swoop in and snap it up. 

Unfortunately, we didn’t know about these historical credit issues. If we did, we could have managed expectations with the lenders in question prior to submitting the application formally.  

The Lesson  

Even if a debt or credit issue is in your past, please share it with your broker. We may be able to use a credit repair agency to sort it out, or sometimes we can try to find a lender whose policies suit your needs. 

What we can’t do is fix problems that we don’t know about.  

Full disclosure is the best way to help us help you! 

Think of your broker like a dating agency, trying to find you the perfect match. If you leave out key details when filling out your profile, chances are you’ll end up paired with potential partners who you find less than desirable. 

So, tell us everything – even if it’s embarrassing, or you don’t think it’s super important. We’ve heard everything before, and we won’t judge. What we will do is find the best lender, best interest rates, and best terms for your unique situation, so all you have to worry about is packing your moving boxes and settling into your new home.

If you have any questions about the home loan process, how much you may be able to borrow or what your options are, feel free to get in contact with our friendly team today.  

Phone: 1300 855 022
Email: clientservices@zippyfinancial.com.au     


Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business.      

About the Author:       

Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.       

Connect with Louisa on Linkedin.      

Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).    

Disclaimer:This article contains information that is general in nature. It does not consider the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This article is not to be used in place of professional advice, whether business, health or financial.      

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