How does Open Banking compare to screen scraping data collection solutions?

When applying for a loan with the help of your Broker, you might be wondering about the difference between Open Banking and screen scraping for sharing your financial information. Open Banking is a secure and government-regulated method that offers significant advantages.

Here's a detailed comparison:

Why Open Banking is Superior

	Open Banking	Screen scraping solutions
Government regulated
Privacy and security
Transaction categorisation
Richer data
Data can be refreshed in real-time

Government Regulation and Security

Open Banking operates under strict Federal Government regulatory guidelines and industry standards, ensuring the highest level of data security and privacy for your financial information. This regulatory oversight is a crucial aspect that sets Open Banking apart from screen scraping.

Improved Security

Open Banking is generally considered more secure than screen scraping for several reasons, including:

• Consent Control: With Open Banking, you must provide explicit Consent before any data sharing occurs. This Consent allows access to data from specific linked Bank Accounts for a designated time period.
• No Need for Login Credentials: Unlike screen scraping, Open Banking does not require you to share your online banking login credentials (username and password). Instead, your bank provides an Open Banking-specific login page and a One-Time Passcode (OTP) via their communication method (e.g., SMS or their Banking App). This significantly reduces the risk of unauthorised access or data breaches.
• Secure APIs and Encryption: Open Banking relies on secure APIs and encryption to transmit and handle financial data, ensuring it is safeguarded during transmission and storage.
• Data Minimisation: Open Banking follows the principle of data minimisation, meaning only the necessary data required for the assessment is accessed, reducing the exposure of sensitive information.
• Easy Consent Revocation: Open Banking allows you to revoke your Consent at any time through the Frollo platform, giving you control over your data.

Real-Time Data and Reliability

Open Banking provides access to real-time account transaction data, which is provided in a few seconds, and ensures data reliability. Transactions sourced from Open Banking are based on the incurred date and are sourced directly from the banks via API, not screen scraping.

Lender Security

An increasing number of lenders are implementing heightened security controls to protect themselves from fraud and cybersecurity threats and, as a consequence, are limiting screen scraping for practical use.

Accuracy

Open Banking provides more accurate transaction data. For example, screen scraping solutions often report transactions based on the posted date, which isn't real-time and potentially misleading. Open Banking uses the incurred date. For more details, see:

• Data quality comparison
• Data-backed comparison of data quality with screen scraping

Big 4 Bank Support

The Big 4 banks already support data sharing via Open Banking for over 30 different account types.

Important Note: Once your financial data is downloaded by your Broker, it is not deleted if you revoke access. The retention and usage of your data are governed by the privacy disclosure agreement you have signed.

Media References:

• Ministers Treasury portfolio - the Honorary Stephen Jones MP 30-Aug-23: Data sharing under the microscope
• Tech News 06-Sept-23: NextGen Applauds Government Discussion Paper on Possible Screen Scraping Ban
• MPA 27-Sept-23: Is screen scraping on its way out?