These primarily include the lack of an independent implementation and governance organisation, and limited consumer and SME representation in the development of industry standards.

According to Trade Ledger, these omissions risk a scaremongering campaign around data security that could stall progress and reduce the scope of the changes, leaving the door open for overseas financial markets to take over our local markets in the new era of Open Banking.

“Open banking has the potential to revolutionise the Australian financial landscape – which is to say, the Australian economy as a whole,” said Martin McCann, CEO and Co-Founder of Trade Ledger.

“Businesses and consumers could gain real-time control of their own financial information, allowing them to evaluate financial products from multiple lenders, and switch instantaneously to a better deal. Currently only 2 per cent of bank customers switch products, despite the fact most could access a better deal.

“Unlocking a veritable treasure trove of bank customer data and placing it in the hands of technology-driven fintechs could also bring forth all manner of new and exciting financial products and processes that could change the way we transact forever.

“However, it’s my fear that we may not see this array of potential benefits by not learning from the best practices and mistakes of the UK, the only country to have already implemented open banking.

“In the UK, the banks were made pay for implementation of open banking under law. This incentivised them to act rapidly and efficiently. The UK also set up a range of trade and consumer lobby groups to balance the power of the incumbent institutions, and a governance body with unprecedented powers to compel all parties to work in the national interest.

“So far, Australia does not have most of this in its implementation plans.”

Scott Farrell, Open Banking Review Chairman, specifically recommended that Australia use the UK Open Banking technical specification as a “starting point” for developing Australia’s technical standards.

Prime Minister Scott Morrison, also stated that Australia could become a global leader in Open Banking in his recent Australian Fintech Awards dinner Speech.

“This is a once-in-a-generation transformation on the global banking industry, driven by governments around the world legislating adoption of disruptive technology,” continued McCann.

“However, given the fact that digital banking services don’t observe national borders, the consequences of getting this wrong could be catastrophic for our local industry.

“It could mean a shift away from a local-banks-versus-fintechs stand-off, and instead Australia might find itself competing against a whole hoard of unstoppable open banking entrants from overseas – an absolute tragedy for Australian financial services,” concluded McCann.