The ACCC has announced that Frollo is Australia’s first FinTech to become an Accredited Data Recipient (ADR) under Open Banking regulations. As an ADR, Frollo will enable its users to access data from accounts held with the Big 4 banks when Open Banking launches in July 2020.
Frollo’s accreditation has been granted at the ‘unrestricted’ level. This will allow Frollo to access not only banking data but also energy and Telecommunications data under the CDR, once those industries are brought into the CDR ecosystem.
Since launching in 2017, the award-winning FinTech now has more than 100,000 users and a track record of helping Australians turn their finances around. With a 40% reduction in credit card debt within 12 months and $125 million in active savings goals amongst users, Frollo is leading the charge towards a more transparent – and fair – financial sector through its consumer app.
Frollo already helps users get a fuller picture of their finances, through a combination of Open Banking product and transactional data, consumers will be able to better understand if they are making the most out of financial products they are using or if there are better products out there for them. Ultimately, that means more competition amongst financial institutions and a better deal for consumers.
With the benefits of Open Banking data, Frollo will help consumers identify when they are missing out, paying too much or should switch to a better deal with their existing bank. Missed bonus interest and unnecessary credit card fees are just a few examples where product data and transaction data can help.
With the impact of Covid-19 hitting millions of Australians hard financially, Frollo’s quest to help people feel good about money is more important now than ever.Gareth Gumbley, Frollo
Frollo CEO, Gareth Gumbley, said, “With the impact of Covid-19 hitting millions of Australians hard financially, Frollo’s quest to help people feel good about money is more important now than ever.
That’s just one of the reasons why we’re excited to be one of the first to launch when Open Banking goes live in July. Our users will immediately notice how much faster they will be able to take control of their money through Open Banking. But more importantly, we’ll be able to show them more of how to take those few simple steps towards paying down debt faster and build their savings.”
Open Banking is the start of a new consumer-driven digital experience that requires complete immersion and constant innovation.Gareth Gumbley, Frollo
According to Frollo’s CIO, Tony Thrassis, becoming the first non-bank to achieve ADR accreditation was no mean feat. “Implementing the technology and compliance to make this happen so quickly required the full talent of our team and their combined expertise. Soon we’ll be leveraging the benefits of behavioural economics, artificial intelligence and better data to help even more Australians feel good about money. But Open Banking is not something you do once and forget. It’s the start of a new consumer-driven digital experience that requires complete immersion and constant innovation.”
In acknowledging the ACCC for the opportunity to participate in the Open Banking trial, Mr Gumbley also said, “I hope our efforts and contribution to this new era of banking in Australia brings about more innovation from FinTechs and other financials to benefit both consumers and businesses.”
In order to grow the Open Banking ecosystem and bring the benefits to as many consumers as possible, Frollo has also developed a number of B2B solutions to help businesses comply, compete and innovate with Open Banking.