Recent amendments from the Australian Government to Consumer Data Right (CDR) regulations has caused an increase in open banking uptake. Following these changes, Adatree, a data intermediary fintech, has become the first ‘principal’ in Australia, enabling it to help other companies bring their data-driven products to life and access relevant data without having to undergo a complex, costly and time-consuming process of accreditation.
The new access models that have been enabled as a result of the changes have allowed unrestricted accredited data recipients, with stringent security practices, like Adatree, to act as principal to other companies wanting to access data, with the other party becoming the ‘representative’.
The first business in Australia to be a CDR representative is Sherlok – Australia’s first automated repricing and refinancing tool, used by hundreds of mortgage brokers and monitoring 35,000 home loans. Powered by AI technology, Sherlok helps brokers retain clients by monitoring clients’ interest rates against other lenders, identifying those at risk of leaving a broker, then refinancing their loans to a lower interest rate on behalf of the broker to improve customer retention.
To enable the pivotal next phase of its growth, Sherlok has entered the CDR to receive real-time and consented transaction data to create an Australian-first offering that will be a gamechanger for the industry. It will give brokers mortgage analytics and insights to arm them with the ability to make instant credit decisions for clients with minimal effort via a single-click refinancing solution.
Through the principal-representative partnership with Adatree, Sherlok has been able to impressively slash the time, effort and cost required to access CDR data, from a month- or year-long process down to just a few days.
Jill Berry, award-winning CEO and co-founder of Adatree, says, “We’re thrilled to collaborate with Sherlok to become the first Australian company to bring this new regulatory access model to life.
“The process to participate in the Consumer Data Right is very lengthy and complex, with security and regulation at the heart of it. Hundreds of companies are registered as interested in becoming Data Recipients, but are yet to start the process. Adatree is leading the way by making it easier for businesses to overcome the high barriers to entry when it comes to CDR and achieve their goals much faster. They get the benefits of the CDR by working with Adatree, so we do the heavy lifting for them.”
Sherlok CEO and founder Adam Grocke, says: “When we launched to market this year, we considered starting our own journey to becoming an Accredited Data Recipient, but a combination of red tape and changing legislation made it really difficult.
“We then discovered Adatree. With Adatree as our sponsor, our timeframe to market has gone from months to weeks, allowing us to provide our brokers with a powerful live data service to help their customers reduce their current interest rate and make better-informed home loan decisions.”
Senator Jane Hume, Minister for Superannuation, Financial Services and the Digital Economy, explains, “Adoption of the Consumer Data Right is forging ahead, with industry taking to the new ‘Principal’ access model just weeks after it was formalised. Greater adoption of the CDR means better, cheaper and more bespoke products and services for consumers and businesses alike. Congratulations to Adatree for taking a leading role as Australia’s first CDR accredited principal, and to Sherlok who is poised to reap the benefits for business and mortgage holders.”
With accelerated timelines a priority, Sherlok and other businesses following the path of becoming a representative will continue to undergo thorough information security assessments to ensure they meet the required regulations of the data sharing technical standards.