FinTech Australia Spotlight: Envestnet | Yodlee

Open BankingOpen banking initiatives are live, in progress, or under consideration in most major economies around the globe. Australia is one of the global leaders in the space with its Consumer Data Right (CDR), passed in August 2019, that enables secure sharing of customer banking information with major benefits for FinTechs and consumers alike. At its core, open banking is about secure and transparent access to consumer-permissioned financial data. The CDR enables Australians to easily share their data with organisations accredited by the Australian Competition and Consumer Commission (ACCC), known as Accredited Data Recipients. This exciting new regime means accredited organisations, including many FinTechs and banks, have more opportunities to create, collaborate on, and deliver products to consumers – like personal financial management products, accounting tools, payment apps, and consumer lending products that utilise real-time data. Envestnet | Yodlee is one of the companies that have received CDR accreditation in Australia. The company uses data aggregation and analytics platform to receive consumer-permissioned financial data via the CDR to deliver personalised advice, products, and services. Being accredited under the CDR enables Envestnet | Yodlee to act as an intermediary by delivering consumer’s financial data to Australia’s banks and FinTechs. The company’s ecosystem provides responsible data access to FinTechs and financial institutions through their open banking platform. CreditToday’s credit evaluation process is largely manual and subject to fraud. In response, Envestnet | Yodlee recently launched the Credit Accelerator to attempt to address these issues. The Credit Accelerator aggregates applicant data from multiple financial institutions and compiles the data into a financial report to overview a consumer's financial position.

An example of the Credit Accelerator Customer Summary Sheet by Envestnet | Yodlee

We spoke with Envestnet | Yodlee Country Manager for Australia and New Zealand, Tim Poskitt, who said that with the government proposing to remove responsible lending obligations (RLOs) to fuel economic growth in the wake of COVID-19, the need to use technology and data to help make accurate and insightful decisions has never been higher. He went on to note that the Credit Accelerator gives considerable power to both financial service providers and consumers, by using real-time CDR data to provide accurate reports. 

Tim Poskitt, Country Manager for Australia and New Zealand at Envestnet | Yodlee

Poskitt points out that Australia and New Zealand are two markets that recognise the value of more personal financial intelligence. “I know first-hand that both countries are exceptionally welcoming towards new thinking and technology,” Poskitt says. “They offer huge opportunities for innovation in the financial space.”Ultimately, the Credit Accelerator seeks to build upon Australian and New Zealand consumer’s keenness to take hold of their personal finance by giving consumers more ways to access their finances at a glance.