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Currently, 13 per cent of Aussie mortgage brokers are using Frollo’s open banking solution – double that of last year.
Over 32,000 consumers used Frollo Open Banking with their mortgage broker in the last 12 months.
According to Frollo’s The State of Open Banking 2025 report, the average time between a broker’s request and receiving clients’ data was seven minutes.
Over the last year, there were 1.88 billion API calls, double the figures from 2024. Currently, CBA, NAB and Westpac have integrated open banking technologies.
These results highlight a growing adoption and tangible benefits. According to Frollo’s head of open banking markets and compliance, Tony Thrassis, there is “a more focused direction taking shape” and he is hopeful for the future of open banking.
Frollo believes open banking is “no longer a theory” as momentum builds. “We must collectively move from viewing the CDR as a burden to seeing it as the national asset it truly is.”
Brokers have been instrumental in the growing acceptance of open banking. Frollo said brokers are a “natural fit” for this innovation as they understand consumers’ full financial picture.
The third-party channel has become a pioneer of these technologies as they leverage information sharing to cut down the need for document chasing and screen scraping.
“With customer consent, brokers can now access a reliable view of a client’s finances in near real time. Consent often lasts for up to 12 months, which means brokers can provide banks with up-to-date information, even if significant time has lapsed between the broker getting client information and filing the loan application,” Frollo said.
NextGen’s chief customer officer, Tony Carn, labelled open banking a “generational game changer” as brokers save around 40 minutes per client through integrated CRM solutions.
There are still challenges that are stalling progress. Thrassis said that while the government proposed a ban on screen scraping back in 2022, there has been a lack of action that harms the acceleration of open banking.
“Without clear government policy, we’re in a grey zone that creates confusion for consumers and undermines the CDR’s core security promise,” he said.
However, he also said the Treasury is leading consultations which is helping to expand adoption, including non-bank lenders.
There is a large portion of consent authorisation failures during bank authentication. According to Frollo, almost 30 per cent of consent authorisations are failing at banks and some major banks recorded failures as high as 31.5 per cent.
This is adding further strain. Most (88 per cent) of failures are due to login issues, one-time passcode problems or technical errors.
Despite the challenges, optimism remains high and Frollo regards the trends as largely positive.
The open banking provider is now working to integrate agentic AI into the solution as well as working with government to address policy concerns.
"Very early on, we recognised the potential for the CDR to really transform the mortgage-broker client relationship – hence significant investment over many, many years,” Mortgage and Finance Association of Australia CEO Anja Pannek said.
[Related: How brokers are shaping the open banking landscape]
