Open banking is the term for financial institutions sharing data
Trust is the cornerstone of data sharing. It is at the centre of the many and varied data sharing arrangements in place today.
Trust is also the foundation of the Australian payments system. This system plays a crucial role in Australia’s economy and as the economy becomes more digital, it generates increasing amounts of data.
The data generated by participants in Australia’s payments system is high value data. It is used to solve problems, deliver benefits and meet obligations. For example:
Importantly, current approaches to data sharing are effective because they successfully protect consumers, maintain trust and balance the commercial interests of stakeholders. This is achieved through alignment of five core requirements:
We believe we have a role to play aligning these requirements as data sharing is further explored.
The COIN is next generation connectivity for Australian payments.
The Community of Interest Network (COIN) is a high availability, managed network for multilateral secure transmission of payment files between payments participants.
Designed as collaborative core infrastructure for the future of Australia’s low-value payments, the COIN provides an alternative to point-to-point connectivity between payments participants.
Currently the COIN provides network services and connectivity for our frameworks for cheques, direct entry, and domestic cards. It also provides the network for BPAY bill payments.
The COIN operates independently from our other payments framework and is open to all participants in the payments system. We provide the rules, procedures and decision-making framework enabling participation in the COIN.
Telstra provides the IP-based virtual private network for the COIN.
"High-value payments total around $122 billion every day, but only number about 38,000 transactions."
High value payments are generally made between financial institutions either for themselves or for their corporate customers including overseas banks.
Payments made through the system are mainly for the Australian dollar leg of foreign exchange transactions. High-value payments:
AusPayNet sets the rules and procedures for the High Value Clearing System (HVCS). The objective is to provide a best practice, efficient and highly secure electronic payments system for the Australian finance industry.
In February 2020, the RBA appointed AusPayNet as the central coordination authority in a major industry program to migrate HVCS messaging to ISO 20022. More information is available here.
112 months to end April 2021
The direct entry system carries the majority of consumer payments by value.
Direct entry is a convenient, safe and reliable way to send and receive payments.
The system is commonly used by businesses to make recurring, automated payments to and from everyday transaction accounts. These include salary and welfare payments (direct credits), insurance premiums and utility bills (direct debits), and internet (Pay Anyone) banking services.
To make and collect payments, a business needs to be approved as a direct entry user by a financial institution. To set-up direct debit arrangements, customers complete a Direct Debit Request (DDR) authority with the business that will be collecting payments from their account.
We coordinate the rules and processes for direct entry payments through the Bulk Electronic Clearing System (BECS). Other payment systems for electronic transfers are operated by BPAY and PayPal.