Efficiency is at the forefront of lenders' priorities, aiming to cut down costs and enhance the mortgage application process. Carn emphasises the need for a superior customer experience, reduced reworks, and faster approval times. Technology leadership emerges as a crucial theme, with early adoption providing a strategic advantage. There is also a significant movement towards embedding more information upfront to boost application quality and leveraging open banking data to further enhance the application process.

Future of open banking in 2024 and beyond

Carn notes the substantial investments over the past three years in open banking. The benefits include improved customer experiences, reduced fraud, and increased efficiency. Carn predicts an acceleration in 2024, with open banking data accessible to more mortgage brokers. 

"We have several aggregators that have already enabled [open banking] which has been fantastic. And we now have the first lender, being the largest in the country, CBA, that has enabled [open banking] as well. Several lenders in the first quarter and second quarter next year will also enable that data to be used in their mortgage application."

Change management and education are identified as essential factors for industry adaptation.

Consumer Data Rights (CDR) and screen scraping

Regulatory changes, including the eventual ban on screen scraping, highlight the paramount importance of trust and security in the lending process.

“We were seeing around a 30% completion rate a year ago, and now we're seeing well more than 70%. So, we're seeing the trust is there. Trust is really important to collect information from a consumer; that's important."

Carn positions open banking data as a superior alternative, offering lenders the ability to recognise the authenticity and currency of data and enhancing trust in the information provided by applicants.

Advice for industry players regarding open banking

Facing real challenges in fast turnaround times, cost-cutting, and heightened competition, brokers and lenders are navigating a complex landscape. Carn's advice to lenders, aggregators, and brokers is clear – embrace change and prioritise efficiency. In a landscape where trust, security, and precision matter, he urges industry players to invest in education and understanding the open banking process. Brokers, recognised as Trusted Advisors, have a strategic advantage as regulators enable consumers to share data with them.