Stryd

Non-bank lenders (NBLs) are coming into the Consumer Data Right (CDR) from early 2025 with the intent for that new sector to be fully operational by mid 2026.

This means open banking in Australia is advancing into open finance!

It’s an exciting time for the CDR, which was established in open banking in 2020, before moving into open energy from 2022.

Data is at CDR’s heart

Data is the cornerstone of the CDR as it’s a statutory data sharing regime.

The regime encompasses specific data about an individual consumer - which can only be shared with the specific consent of that consumer - and enterprise-level data about products that is provided publicly by data holders via open APIs.

So there’s consumer data, and product data.

‍Data holder requirements for Non-Bank Lenders (NBLs)

Data holder requirements for NBLs who will be in scope include providing a consumer dashboard and authentication mechanism, making an API endpoint available for secure data sharing, having a dispute resolution process, and complying with regulatory reporting and other obligations such as privacy safeguards and technical data standards.

The requirements will also include making Product Reference Data (PRD) available via an open API.

At Stryd, we are experts in PRD and how to use it to secure your competitive advantage in the mortgage market.

And we’ve got a tip to share.

On the one hand, this requirement to share product data could be viewed by NBLs as just a compliance requirement … but if you read on … we’ll offer a different and more strategic perspective.

A short history of Product Reference Data (PRD)

CDR started with the banking sector when open banking went live on 1 July 2020.

Prior to that, the big four banks had been sharing PRD voluntarily from July 2019. Then from February 2020, PRD was mandatory for mortgages and personal loans.

Other non-major banks (and also credit unions and building societies) were required to provide their PRD from October 2020.

The mandatory data fields for disclosure of PRD data are stipulated by the Data Standards Body who have been charged with designing open data standards for safe and secure data sharing.

In theory, PRD should reflect all the key features of the product, including the same information that lenders publish in a Product Disclosure Statement (PDS) or on a website, and other public domain sources.

‍Sharing Product Reference Data (PRD) instantly expands your serviceable market

The sooner you share your PRD, the sooner we can include it in our Stryd Product Repository!

This will instantly expand your serviceable market as your home loan products will be visible in the broker market via our Stryd Broker application.

And there’s no need to wait until you officially fall in CDR’s scope … you can start to share your PRD now!

While you’re getting ready to do that, and for useful background on how to share high quality PRD, you can download our white paper Democratising Data for the Good of Consumers.

Using PRD to monitor the market saves time and creates efficiencies

If your team is trying to monitor your competitiveness in the home loan market by scraping the web and manually extracting data from PDFs and spreadsheets, you can save a lot of time and enhance your efficiency by tapping into our Stryd Product Repository.

There, we have categorised the home loan information from 80+ banks and 1,600+ products.

And when NBLs come into the CDR, we’ll include them too!

Non-bank lending products are coming in scope for CDR

Before the sector was delayed, a specific set of products was listed in the draft rules which were published in August 2023, including credit cards, home loans, personal loans, business finance, investment loans, leases, and BNPL products.

However, at the time of writing, we are waiting for confirmation on the phasing in of NBLs and we know there is a very broad range of products offered within the non-bank lending sector.

A key feature of PRD is that it is published in accordance with data standards designed to enable product comparison on a like-for-like basis as a stimulus to innovation and competition, for example, by fintechs like Stryd.

Why should Non-Bank Lenders (NBLs) start sharing Product Reference Data (PRD) now?

PRD offers benefits not only to consumers and service providers but also to the lenders themselves, whether bank or non-bank lenders.

Here are some of the benefits to lenders of sharing high quality PRD:

reduces the need to provide product and pricing files to aggregators and other users in most instances
ensures information is always as up-to-date as possible as it should be a real-time representation of the lender's products
widens the serviceable market the lender is reaching.

By providing PRD information as soon as possible, the product and pricing information of NBLs will be available in real time to the market and can be used by solutions, such as Stryd Broker, so brokers can find the most competitive offers for their borrowers.

Therefore, consumers can receive the most competitive and accurate offers suitable for their needs in real time from NBLs who are providing PRD. This delivers those NBLs a competitive advantage over others who are not yet making it available.

Why PRD could be CDR’s best kept secret!

At Stryd, we work with lenders, aggregators and brokers.

Lenders use PRD to understand the competitiveness of their own loans.

Aggregators and brokers use it to automate processes that write new business or find a better deal for a borrower and protect trail book revenue streams.

Knowing how to use it is an essential part of any lender’s toolkit.

It’s also a foundational component of the data-led CDR regime, which aims to give consumers more choice, convenience and confidence.

So get ahead of the competition by making PRD part of your toolkit today!

Given the increasing appetite of organisations - like brokers and aggregators - to leverage PRD, there is a definite competitive advantage to be gained by NBLs in providing it sooner rather than later.

Discover how Stryd can help lenders get ahead!

To learn how Stryd gives home lenders a competitive advantage, reach out to us at sales@stryd.au and we’ll pick up the conversation! If you’d like to see Stryd in action, you can book a demo here.