PocketSmith launches Open Banking hub to power secure data sharing in Australia

Source: Reputation Edge / PocketSmith

Personal financial management fintech PocketSmith has created an Open Banking hub to make secure data sharing easier for consumers to understand.

The dedicated guide explains how Open Banking works, why it is secure, and how PocketSmith uses it to give consumers clearer, more connected money insights.

“It’s important to demystify Open Banking because it’s natural for people to hesitate when something feels new and unfamiliar,” said Jason Leong, co-founder & chief executive officer of PocketSmith.

Jason Leong, co-founder & chief executive officer of PocketSmith

“In time, Open Banking will become an everyday tool we rely on in the background – just like WiFi – and we won’t give it a second thought because it’s making life simpler, faster and more personal.”

The hub highlights the benefits of Open Banking in the context of routine actions, such as comparing financial products or gathering personalised insights, as well as common use cases such as applying for a personal loan or a rental property.

With over 370,000 customers globally in 190 countries, PocketSmith has customers in all 90 countries currently implementing or operating Open Banking frameworks.

The online guide says Open Banking is built on a set of principles that help people share their financial data safely and securely, although it is not a single global system, and cannot be used across borders.

The guide also states that Open Banking is the most secure way to share sensitive data with trusted apps and services you choose, so you can save time, simplify money management, and unlock more personalised financial experiences.

The hub has a comprehensive overview of Open Banking in Australia and later this year it is planned to add specific snapshots customised by geographical region for Brazil, Canada, the EU, New Zealand, the UK and the USA. For Australia’s Consumer Data Right, there is an overview of the history and functionality of the regulatory regime, as well as examples of financial products and services being supported by Open Banking, such as lending, wealth and investing, accounting and tax, and personal financial management (PFM).

“In many cases, Australian consumers won’t realise Open Banking is being used until they are asked to connect their bank account. At that point, Open Banking is simply the secure technology being used to transfer bank information to the service you’re signing up to use,” Leong noted.

PocketSmith’s implementation of Open Banking under Australia’s Consumer Data Right (CDR) is the foundation for the app’s automation and elimination of manual and repetitive tasks. In turn, this reduces time spent on managing money and improves confidence through personalised, data-driven decision making.

“PocketSmith has 100,000 local users currently active in Australia, which makes it our biggest market, due in part to our successful implementation of Open Banking.” Leong said.

Starting with consented Open Banking feeds, followed by fully flexible organisation and categorisation, PocketSmith’s software delivers budgeting, calendar-based planning and powerful forecasting tools, including what-if scenarios.

“We’ve grown our Australian user base by 25% in the past year, highlighting the strong demand for personal finance tools amidst an ongoing cost-of-living crisis.” Leong added.

Further reading: PocketSmith’s global spending map reveals where Australians can benefit from Open Banking data