Most of us manage money in fragments: a savings account here, a credit card there and several financial apps in between. The result is often plenty of information, but no clear picture of where our money is going.
Open banking can change that.
With your permission, open banking allows financial information from eligible accounts to be securely shared with an authorised service or app. This can help you see more of your financial position in one place, rather than switching between multiple accounts and platforms.
For women who have historically had less access to financial tools, advice and wealth-building opportunities, greater financial visibility can be particularly valuable.
How Does Open Banking Work?
Open banking uses secure digital connections known as application programming interfaces, or APIs, to transfer your financial data between participating organisations.
It does not require you to give an app your internet banking password. Instead, you provide specific consent through a controlled data-sharing process.
Depending on the service, you can control:
what information you share;
which authorised organisation can access it;
how the information can be used;
how long your consent remains active; and
when you want to withdraw that consent.
In Australia, open banking operates under the Consumer Data Right (CDR). Businesses participating in the CDR must meet applicable accreditation, authorisation, privacy and data-security requirements. Consumers can also withdraw their consent to data sharing. ACCC, OAIC
Is Open Banking Safe?
Open banking has been designed with security and consumer control at its core. Participating businesses must comply with strict rules governing how Consumer Data Right information is collected, used, stored and disclosed.
These protections include:
Secure data transfer: Your financial information is transferred through secure digital connections rather than by sharing your banking password.
Strict participation requirements: Organisations must have the appropriate accreditation or authorisation to participate in the CDR system.
Consumer consent: You choose what information to share and how it may be used.
The ability to withdraw consent: You can stop sharing your data through the available consent controls.
Privacy safeguards: CDR data is subject to dedicated rules governing its collection, use, disclosure, storage and deletion.
Regulatory oversight: The CDR is jointly regulated by the Australian Competition and Consumer Commission and the Office of the Australian Information Commissioner.
No digital system is entirely without risk, so it is still important to check that you are using a legitimate service and to read its privacy and consent information carefully.
What Can Open Banking Help You See?
A More Complete Financial Picture
Connecting eligible accounts can allow you to view balances, transactions and spending information together. This may make it easier to understand your overall cash flow.
Spending Patterns and Forgotten Expenses
Regular payments, subscriptions and gradual increases in household bills can be difficult to notice when they are spread across different accounts. Bringing that information together may help make these patterns more visible.
Your Current Debt Position
Seeing balances, repayments and interest-related expenses in one place may help you better understand what you owe and prepare more informed questions when reviewing your options.
This information does not replace personalised financial or credit advice, but it can give you a clearer starting point.
Progress Towards Savings Goals
A more complete view of your income and expenses may make it easier to set realistic savings goals, track progress and identify where there could be room in your cash flow.
Less Financial Administration
Some services use open-banking information to streamline processes such as income and expense verification. The precise benefit will depend on the provider, service and application involved.
Understanding Your Millie Credit Score
Your credit profile can influence how lenders assess an application, but many people do not know what information their credit report contains or how different scoring systems work.
The Millie Credit Score, powered by TaleFin, brings together relevant financial information to give you greater insight into your financial position. Your score is presented on a scale from 0 to 1,000, alongside information intended to help you understand the factors that may influence it.
Credit scores are not universal. Different providers may use different data, scales and assessment methods, and a particular score does not guarantee that a credit application will be approved.
Understanding your score and the information behind it can nevertheless help you:
identify information that may need correcting;
understand how your financial behaviour is being reflected;
prepare better questions before applying for credit; and
make more informed financial decisions.
Be careful with the existing claim that paying off a loan will necessarily appear quickly or improve someone’s score. Credit scoring is more complicated than that, and we should only include that statement if TaleFin has explicitly approved it.
Why Open Banking Matters for Women
Women’s financial lives are often shaped by factors including the gender pay gap, career breaks, caring responsibilities and lower average retirement savings.
Open banking cannot solve these structural inequalities. What it can do is help remove one practical barrier: trying to make financial decisions without being able to see your money clearly.
When you have a more complete view of your finances, you may be better placed to ask useful questions, recognise patterns and make decisions based on current information rather than assumptions or anxiety.
Clarity is where financial confidence starts. Open banking can help provide it.
This article contains general information only and does not constitute financial, credit or legal advice. Consider your circumstances and seek appropriately qualified advice where required.
