Australians could be sitting on thousands of dollars in potential savings each year—but many are missing out. A banking innovation called Open Banking has been available since 2020, yet fewer than 800,000 people in Australia are taking advantage of it. This tool allows you to securely share your financial information with accredited providers to find better deals, optimize spending, and even consolidate debt.
Here’s how Open Banking can help you save money and take control of your finances.
What Is Open Banking?
Open Banking is part of Australia’s Consumer Data Right (CDR). It lets you share your banking data safely with authorized providers, who can then:
- Compare financial products tailored to your situation
- Find better interest rates on loans and savings accounts
- Analyze spending habits to help you budget smarter
WeMoney founder Dan Jovevski compares it to using a comparison website, but with results that are personalized to your exact financial circumstances.
“Budgeting is difficult,” Jovevski says. “About 70% of Australians do their budgets in their heads because of the many moving parts in our finances.”
How One Aussie Saved $4,200 in a Year
A real-life example shows just how powerful Open Banking can be:
- A 56-year-old woman had three credit cards with a total debt of $18,000
- Her repayments were around $700 per month
- She used Open Banking to find a lower-rate personal loan
Within a single day, she consolidated her debts into one loan at 9.7% interest (down from 20%), cutting her monthly payments to $350. This saved her $4,200 in a year, which she spent on a family holiday to Japan.
Jovevski notes that traditional debt consolidation can take weeks, but Open Banking makes the process almost instantaneous—like ordering an Uber for your money.
How Does Open Banking Work?
Here’s the simple process:
- Give consent – Authorize a provider to access your banking data securely.
- Data analysis – The provider checks your accounts, transactions, and spending habits.
- Recommendations – You receive personalized insights on how to save or optimize your finances.
- Easy implementation – Switching products or consolidating debt is streamlined and fast.
You can also revoke access anytime, ensuring your financial information isn’t stored indefinitely.
Where Can You Use Open Banking?
Open Banking isn’t limited to loans—it can help in:
- Mortgages and lending: Find better rates and manage repayments
- Personal finance apps: Track spending and cut unnecessary subscriptions
- Wealth and investment tools: Optimize interest rates on savings accounts
- Accounting and bookkeeping: Automate financial tracking
- Identity verification and property management: Streamline administrative tasks
For example, apps like WeMoney can analyze every transaction and categorize spending to highlight savings opportunities. Even a 1% better interest rate on $40,000 in savings can net you $400 extra per year.
Quick Tips for Using Open Banking
- Always use accredited providers for security
- Review personalized recommendations regularly
- Combine with budgeting apps for maximum savings
- Keep your data up to date for accurate insights
FAQs About Open Banking
Q1: Is Open Banking safe?
Yes, it’s regulated under government-approved standards and uses secure authentication.
Q2: Can it help reduce debt?
Absolutely. It can consolidate high-interest credit cards into a lower-rate loan.
Q3: Do I have to pay to use Open Banking?
No, accessing the platform is free. Some providers may offer paid products.
Q4: How quickly can I see savings?
Potential savings can appear within weeks, depending on financial decisions you implement.
Q5: Who can use Open Banking?
Any Australian bank customer can use Open Banking through accredited providers.
Take Control of Your Finances Today
Open Banking gives Australians the tools to save money, consolidate debt, and make smarter financial decisions—all while keeping data secure. Don’t leave thousands of dollars on the table. Explore Open Banking today and start maximizing your savings