Open Banking framework promises future AI-powered tools and streamlined finance for small businesses, with key expansions planned through mid-2026.
Australia’s Consumer Data Right framework could deliver significant benefits for small businesses in the coming years, from improved cash flow management to AI-powered financial insights, according to discussions at the recent CDR Summit hosted by FinTech Australia.
The summit brought together leaders from policy, technology and finance sectors to examine how the Consumer Data Right, which gives Australians the ability to share their data between service providers of their choosing, can deliver practical outcomes for consumers and businesses.
Amanda Newton, Director of GTM Accountant APAC at Intuit QuickBooks, said the framework represents a major opportunity for Australian small businesses to access secure, real-time financial data that could transform their operations.
Speaking about the summit’s focus on practical applications, Newton highlighted five key areas where small businesses could see immediate benefits from CDR implementation.
The framework promises potential improvements to cash flow management through more accurate, personalised forecasting and enhanced access to cash flow-based lending solutions once fully implemented. With CDR expansion to non-bank lending planned for early 2025 and operational by mid-2026, small businesses may eventually gain easier access to finance, with the prospect of faster loan approvals, tailored financial products, and more inclusive credit assessments through secure data sharing.
The technology could also help tackle the persistent problem of late payments through innovations like Variable Recurring Payments and streamlined payment initiation through accounting platforms, potentially reducing both delays and associated costs.
Administrative efficiency represents another significant opportunity, with connections between financial services and accounting software promising to reduce manual work while increasing financial visibility and improving tax readiness.
Perhaps most significantly, CDR could fuel the development of AI-powered tools for small businesses, enabling smarter budgeting and predictive forecasting capabilities.
Grant Augustin, CEO of SISS Data Services, a leading provider of secure bank transaction data feeds, drew an analogy to explain the relationship between AI tools and data access.
“AI-powered software is like an engine for small businesses – it enables better decisions and less work,” Augustin said. “But that engine requires fuel – and that fuel is the secure, reliable, accurate transaction data that CDR provides.”
Industry investment and accreditation
Intuit QuickBooks has invested more than five years in developing the infrastructure, policy frameworks, and product innovations needed to support CDR implementation. The company has worked directly with Treasury officials, collaborated with regulators, and engaged with industry peers to help shape the framework.
The accounting software provider was the first in its sector to achieve accreditation from the Australian Competition and Consumer Commission under the CDR framework, demonstrating its commitment to secure, consumer-focused solutions.
Newton emphasised that advocacy for small business interests must be coupled with genuine product innovation, work that continues both behind the scenes and in public forums.
Learning from international experience
The UK’s Open Banking market, one of the most advanced globally, now serves over 13.3 million users and has already demonstrated improvements in capital access, cash flow visibility, and business management tools.
Australia appears positioned for a similar transformation as the framework continues its gradual expansion, though success will depend on continued focus on delivery, education, and collaboration across the ecosystem.
Newton argued that Open Banking represents more than just technical or regulatory reform.
“It’s an opportunity for Australians to harness their financial data for faster, safer, smarter decisions, and to rebalance the financial system around the people and businesses it serves,” she said.
The summit’s key message centered on ensuring innovation reaches every corner of Australia’s economy, with the potential to create significant benefits when small businesses are empowered to thrive.
While complexities remain in evolving the framework and full implementation is still years away, industry leaders expressed optimism that a collaborative approach could eventually deliver substantial benefits for small business innovation and broader economic growth.
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