Zip and Open Banking (Westpac, Macquarie Bank etc)

Seeing a lot of talk regarding Zip and banks and how BNPL is in threat (the same talk Taxi drivers would give when Uber disrupted their industry).

People who are generally talking like this don't know much about Zip whatsoever and only see it as a BNPL players as that is all they read when they dumped their early access to super into it.

So this thread is about what Zip actually does outside of the BNPL field - and it is actually quite a great deal.

What is Open Banking?(https://www.finder.com.au/open-banking)
"Open banking gives you control of the data banks and financial institutions hold on you. It can be difficult to get your full financial data and for banks to send that data to each other and to other companies. This makes it tricky to for you find the best product or service and to switch to new products and services.Open banking allows you to ask that your data be sent to other banks, financial institutions and authorised organisations when you want it to. You control who holds your data and how it is used."

When does open banking start in Australia? (https://www.finder.com.au/open-banking)
"Open banking officially started on 1 July 2020. From this date, the Big Four banks (CommBank, NAB, Westpac and ANZ) were required to make your data available to you if you request it.Data which will be included in the first phase of open banking from 1 July 2020 will include credit and debit card, deposit and transaction data.
Mortgage and personal loan data will follow on 1 November 2020. Banks other than the Big Four will need to provide access to open banking data over the next 12 months to July 2021."

So what does any of this have to do with Zip?

• Westpac article from 20189 where Larry Diamond is talking about how "open banking will be huge" : https://www.westpac.com.au/news/in-depth/2019/07/podcast-zips-rise-from-start-up-to-unicorn/

“I think it’s going to be huge once that's fully rolled out, ultimately delivering better customer outcomes. The ability for players to kind of harness that, understand the data and drive meaningful insights…I think will be hugely valuable,” he says.

• Recent PDF created by Westpac titled "The future of transaction banking" where Zip gets a shout out .: https://www.westpac.com.au/content/dam/public/wbc/documents/pdf/cb/WBC_Future_of_transaction_banking.pdf

"Sometimes banks compete with fintechs; sometimes they collaborate. Westpac has access to fintechs of all types and life stages, including Zip (a buy-now-paylater digital service)"

• ZipMoney and Macquarie partner on open banking (http://eastandpartners.com/publications/banking-news/zipmoney-and-macquarie-partner-on-open-banking)

"Macquarie Bank customers will be one of the first to test the new open banking regime with assistance from a fintech firm.Retail finance solutions provider
ZipMoney has announced that it will allow Macquarie customers to add banking and credit card accounts via personal financial management app Pocketbook. The firm’s parent company, Zip Co acquired Pocketbook in 2016 and currently boasts more than 400,000 users."

• 86 400 customers can now see Zip transactions in their banking app (https://www.finder.com.au/86400-zip-partnership)

""As an early participant in Open Banking testing we are already preparing to migrate this service to APIs, however this is likely next year when Open Banking is live, operational and more broadly available in the financial services ecosystem," Bell said.


So as you can see, Zip not only wants to disrupt the credit card industry - they are disrupting the entire banking e=industry and have had the plan in motion and gradually building "one brick at a time" with monumental players.