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

As a Mortgage Broker, understanding the difference between Open Banking and screen scraping is crucial for providing secure and efficient service to your clients. Open Banking, a government-regulated framework, offers significant advantages over screen scraping methods.

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

Key Advantages of Open Banking for Brokers:

1. 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 clients' financial information. This regulatory oversight provides a robust framework that screen scraping lacks.

2. Improved Security and Consumer Trust: Open Banking is significantly more secure than screen scraping due to:

   • Explicit Consumer Consent: With Open Banking, Consumers must provide explicit Consent before any data sharing occurs, granting you access to data from specific linked Bank Accounts for a designated time.

   • No Sharing of Login Credentials: Open Banking does not require Consumers to share their online banking login credentials. Instead, their bank provides an Open Banking-specific login page and a One-Time Passcode (OTP), reducing the risk of unauthorised access.

   • Secure APIs and Encryption: Open Banking uses secure APIs and encryption to transmit and handle financial data, safeguarding it during transmission and storage.

   • Data Minimisation: Only the necessary data required for the assessment is accessed, minimising the exposure of sensitive information.

   • Easy Consent Revocation: Consumers can revoke their Consent at any time through the Frollo platform, giving them control and building trust in your services.

3. Real-Time, Reliable Data: Open Banking provides access to real-time account transaction data, delivered quickly and sourced directly from the banks via API. This ensures data accuracy and reliability compared to screen scraping, which often relies on posted dates.

4. Lender Security Compliance: Many lenders are implementing stricter security controls and limiting screen scraping due to fraud and cybersecurity threats. Open Banking aligns with these enhanced security measures, ensuring smoother data access.

5. Data Accuracy: Open Banking offers more accurate transaction data. Screen scraping often uses posted dates, which may be misleading. Open Banking transactions are based on the incurred date. For more details, see:

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

6. 115 Data Holders to Choose From: Clients have access to 115 Data Holders (such as Banks) when collecting their Open Banking data to use in their Frollo App or to share with their mortgage broker. A wide range of account types are supported including:

   • Business bank accounts

   • Business loans

   • Cash management accounts

   • Credit and charge cards

   • Leases

   • Lines of credit

   • Margin loans

   • Mortgage offset accounts

   • Overdrafts

   • Personal loans

   • Regulated trust accounts

   • Residential mortgages

   • Savings accounts

   • Term deposits

   • Trade finance

   • Transaction accounts

   • Travel cards

   • Trust accounts (only where funds are held in trust regulated industries)

   • And other eligible account types.

Important Note: Once a Consumer's financial data is downloaded, it is not deleted if the Consumer revokes access. The retention and usage of their data are governed by the privacy disclosure agreement they have signed.

Media References:

• • Ministers Treasury portfolio - the Honorary Stephen Jones MP 30-Aug-23: Data sharing under the microscope
  • Tech News 06-Sep-23: NextGen Applauds Government Discussion Paper on Possible Screen Scraping Ban
  • MPA 27-Sep-23: Is screen scraping on its way out?
  • The Adviser 31-Oct-25: Consumer Data Right ‘a natural fit for brokers’: Assistant Treasurer