Australian accountants and bookkeepers have had an okay system of transaction bank feed data. Not ideal. Here’s how new Consumer Data Right (CDR) legislation sparks better technology to make this easier, and more secure.

It’s been a few years now since Australian accountants and bookkeepers have been able to access client bank feeds digitally, without having to download CSV files. It was better than reviewing printed statements. The service works better for some banks than others.

Here we explain:

  • Why getting transaction details has been difficult until now.
  • How this has compromised security and efficiency.
  • How new open banking rules have brought a better way to get accurate transaction data from clients. 

Why getting accurate transaction data has been so difficult.    

It has been difficult to get accurate transaction feed data in many cases. This is because many banks don’t want to share it. 

It’s partially a security concern. It’s also because it is valuable data and if other competitors get access to it, then the bank may lose some competitive advantage.

So, they’ve put up walls to new technology getting to the customer data. Even if the client wants to share it.

That’s why the transaction data is so often incomplete or inaccurate. Some of the tech designed to access the data is working around bank systems and protections, rather than with them.

How the technology we now use is leaving us vulnerable.

So, work-around software has been designed. Plenty of accountants and bookkeepers, mortgage brokers and financial planners use it.

It often uses ‘screen-scraping’ technology. This requires  the client to disclose  their banking details to a screen-scraping company. Certainly NOT ideal, and often in breach of banking Ts & Cs. As this disclosure often happens at the accountant or bookkeeper’s advice, they can be vulnerable to accusations if the client falls victim to cyber-fraud.

Once the username and password is entered into this scraping technology, it ‘pretends’ it’s the owner of the account. It proceeds to log-in and scrape the transaction data from the bank’s system. 

The result is that there’s often incorrect or incomplete data. 

That causes friction with the client, as you chase up the accurate data and time is wasted. 

New open banking rules pave way for better technology.

The federal government recognised that consumers need a way to share data that does not leave them vulnerable to cyber-crime and inefficiencies. 

Out of this challenge arose an  opening banking philosophy – people should be able to easily and securely share their data. 

The Australian government then introduced the new Consumer Data Right (CDR) legislation.

Under the new regulations, all banks must share data when instructed to. But it must be done in a secure way. No more back-door screen scraping. No more sharing passwords. ACSISS chosen to deliver CDR legislation.

ACSISS, by SISS Data Services,  is one of just a few registered Accredited Data Recipients (ADRs) approved  to collect data through CDR and deliver it to authorised destinations, including a consumer’s nominated “Trusted Adviser”.  In this way, ACSISS is empowering consumers to securely share, and advisers to securely receive, bank transaciton data.

Achieving  ADR status was due in part to our having spent over 10 years as Australia’s leading provider of secure data sharing servics for banks and software platforms – including leading accounting software platforms.  

ACSISS by SISS Data Services was best placed to be chosen as a trusted ADR. It’s a busy time as we work with banks and accounting software providers to adapt our service so accountants and bookkeepers can take advantage of  this new CDR legislation. 

Before the year is out, we’ll be introducing this technology in Australia. 

 

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our open banking technology.

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