Macquarie has agreed to make its application programming interface (API) available to third party developers – a move that has so far been resisted by every other major bank. Open Banking has the potential to drive significant customer benefits, but may also lead to digital disruption.
Macquarie has launched its new ‘open banking platform’, which the bank says will give customers “control over the everyday banking data” as well as “the power to securely manage how they want to share it”.
As part of announcement, Macquarie will now give “approved” third party providers access to its API via the bank’s open developer portal and test sandbox, called devXchange.
“While consumers typically need to reveal their banking login details to use budgeting tools and similar services, Macquarie’s open platform means customers will never need to give their login details to a third party, creating a more secure way to access these services,” said a statement by the bank.
“Macquarie’s open platform also gives customers the power to manage access to their data in real time through the Macquarie banking app. Authorised third party providers will have read only access to that customer’s data through a secure token which then reads the data from Macquarie’s systems,” said the bank.
Macquarie head of personal banking Ben Perham said, “Our customers have been telling us they want to securely connect their information into their favourite accounting software, budgeting app and other innovative services they’re interested in. Macquarie’s open platform will make this possible.
“We’ve built a highly personalised digital banking experience, so empowering our customers to securely manage how they want to use their own data is the logical next step.
“APIs are being used by leading digital companies like Amazon and Google to transform consumer experiences, and we’re excited about the opportunities the technology will bring to financial services.
“We’re looking forward to working with third party providers and developers to drive new and more personalised solutions for our customers that tie in seamlessly with daily life.”
