In this article
Future-ready data sharing is here. Open Banking is a modern way to share bank data with other platforms, helping you get real-time insights without putting sensitive information at risk.
As MYOB launches our own Open Banking process, we’re looking at key regulations, how the process works, and what your business needs to do before you start.
Summary and key takeaways
Open Banking is regulated by the Australian government under the CDR (Consumer Data Right).
Providers must be accredited with the ACCC before they can access data through Open Banking.
Accredited providers use secure APIs to directly share data.
MYOB has partnered with Mastercard to provide seamless, secure Open Banking for our customers.
Businesses must register a nominated representative with their bank and load their ABN (Australian Business Number) into MYOB before they start.
What is Open Banking?
Open Banking is a secure way to share financial data, regulated by the Australian government as part of the Consumer Data Right (CDR). It lets you give accredited providers access to your bank information without putting data at risk. Providers and banks use a standardised process and secure API to share data seamlessly, in near real-time.
Users get full control over the data they share, with the ability to revoke access at any time. It’s about consent, control and transparency.
Why Open Banking matters for small businesses
Open Banking lets your business share bank data with your financial services software, so your accounting and budgeting tools get a consistent flow of reliable, up-to-date information. For example, connecting your bank accounts to MYOB through Open Banking gives you access to a 360-degree view of your bank data, which you can use for analytics, day-to-day transaction tracking, tax preparation and more. For small businesses, it’s an invaluable tool for performance analytics and financial tracking.
It’s data sharing designed for modern technology and the needs of your business.
How Open Banking works
Open Banking uses standardised APIs (Application Programming Interfaces) to connect your banking data to your software, like MYOB Business. The result is a consistent flow of data into your software system, critical for bank reconciliations, financial reporting and cash-flow management.
How is this different from classic bank feed systems? It comes down to consistency and data security standards. Because it’s controlled by the Australian government and the CDR, all software providers and banks involved have to follow the same security and data use guidelines, which means it’s a step up in terms of sophistication and data security. Standardised bank connections also allow smooth data delivery in near-real time.
Another difference: Open Banking is all about consent and control. Users have to give explicit, specific consent about the data they want to share, and this can be revoked at any time.
Here’s a look at the step-by-step process of setting up Open Banking with MYOB.
1. Prepare for Open Banking
Before you start the process, you need to put your ABN (Australian Business Number) into your MYOB account. Your business also needs to designate a nominated representative, who will be responsible for making changes to shared accounts. You can usually do this through your bank portal.
2. Give explicit consent
Each financial software platform will work slightly differently, but there will always be a button or form to give the provider access to your accounts.
3. Redirect and authenticate
Once you have given consent, the provider will redirect you to your bank, where you log in with your usual details, along with a one-time password.
4. Confirm consent
In your banking app, you’ll confirm the data you want to share and for how long – in most cases, this is 12 months.
5. Data transfer
Your bank is then authorised to share the data with your software provider using a secure API. This lets the provider pull your data into your software.
6. Revoking access
If you change your mind about data access or shift to a different provider, you can revoke access to your data at any point through your banking provider.
Key organisations involved in Open Banking
Open Banking involves three organisations: Banks, accredited data recipients and software providers.
Banks
The bank’s role is to get clear consent from customers, then share their data with an approved provider via a secure API.
Accredited data recipients
An accredited data recipient (ADR) is an organisation accredited by the ACCC to receive Open Banking data directly from a bank. In some cases, the software provider itself is the ADR. Others use a separate accredited provider to receive and pass on the data. For example, Mastercard is MYOB Business’s accredited data recipient and Solo by MYOB uses Adatree.
Software providers
Software providers receive data from the ADR – or direct from the bank if they are accredited – through a standard API. Providers that use Open Banking include accounting platforms like MYOB, share and investment platforms, and other financial tools.
How Open Banking fits into the Consumer Data Right (CDR) framework
Open Banking works under Australia’s Consumer Data Right (CDR). CDR is a framework that allows consumers to share their data with third parties securely, using regulated data-transfer technology. CDR aims to be a safe, open pathway for data sharing, with government checks and balances maintaining standards. It’s being rolled out gradually across industries, with banking among the first.
Accreditation and regulations
The regulations that control Open Banking include CDR standards, ACCC accreditation and rules around data privacy and transfer APIs.
CDR standards
CDR standards set strict requirements for safe data sharing, data formatting, security, privacy protocols and the APIs used for data transfer.
ACCC accreditation
Banks and third-party providers must meet rules around data handling and privacy to be accredited through the ACCC (Australian Competition and Consumer Commission).
Data transfer APIs
APIs are software tools used to safely transfer data between banks and software providers. In Open Banking, providers must use standard APIs that meet privacy and security rules.
Open Banking vs traditional bank feeds
Open Banking differs from traditional bank feed methods in its speed, security and ease of access.
Here’s a look at some of the key differences:
Traditional methods | Open Banking | |
Setup | Slow process – can take up to 10 days to gain approval. | Simple setup – under five minutes for most users. Make sure to put your ABN into MYOB and assign a nominated rep before you start. |
Technology | Individual banks use their own systems and security rules. | Providers and banks use a standardised API for data transfer. |
Security | Data privacy depends on the banks’ internal standards and technology. | Data transfer is governed by the CDR, which sets strict standards around privacy and security protocols. |
Transfer methods | Some smaller providers use methods like screen scraping and shared log-ins, which can put data at risk. Note: MYOB’s classic bank feed technology doesn’t use these methods. | Data is shared directly through a standard API, for reliable, accurate, secure feeds. |
What kind of data is shared through Open Banking?
Unlike classic bank feed systems, Open Banking gives your business control over the type and volume of data shared. You can limit access to a single account or choose to give your provider access to multiple business accounts. Data shared between the bank and provider includes transactions, loan information and accounts.
On the software provider’s side, the data used and displayed will depend on the services being used and their specific UI (user interface). For example, if you’re using MYOB as your accounting software provider, we’ll only access the transaction information needed for our services – nothing more.
CDR rules don’t let you share sensitive data like login details, PINs or other security credentials.
Open Banking: Benefits for small businesses
Open Banking comes with a range of benefits for small businesses, including faster, more accurate bank feeds, reduced admin time and better cash-flow visibility.
Quick, simple setup
Skip the paperwork and waiting periods. With Open Banking, connecting your bank account takes minutes — not days.
More reliable feeds
Legacy data sharing methods can be slow and unreliable, with syncing delays and missing transactions. Open Banking updates your bank feed regularly and accurately.
Less manual admin
With a reliable link between your bank and software, there’s less manual admin needed, reducing the risk of error.
Better cash-flow visibility
Track incoming and outgoing transactions in close to real time. This makes it easier to see and manage cash flow – a must for small businesses.
Future-proof systems
A reliable source of structured, accurate data helps you get the most out of your accounting or financial software, and puts you in a strong position to adopt AI and automation tools in future.
Tax and audit readiness
Constant tracking of transactions in MYOB sets you up for quick, accurate reconciliation at tax time, or if your business needs to be audited.
Getting started: Step-by-step setup
MYOB’s Open Banking launched to new customers in early March 2026, and the setup is as simple as possible. Check the CDR Ready site to make sure your accounts are ready for Open Banking.
Here’s how it works:
1. Pre-setup steps
Enter your ABN into your MYOB account – in the ‘Business Details’ or ‘Company Information’ sections.
Log in to your banking portal and set a nominated representative for your business accounts. You can usually do this under the ‘Manage Accounts’ or ‘Account Users’ tab.
2. Set up Open Banking
Log in to MYOB and find the Banking Hub.
Select ‘Connect bank or credit card’.
Choose your bank from the list.
Click to authorise data sharing. If your bank is approved for Open Banking, you’ll be redirected to the Open Banking portal.
Confirm your identity with your bank. You’ll usually receive a secure code through your banking app – no need to log in.
Choose the accounts you want to share with MYOB.
Click to authorise, then wait for your bank to approve.
Safe, smooth data sharing is almost here
Sharing your banking data shouldn’t be risky, and using it shouldn’t rely on buggy systems or manual workarounds. Open Banking is designed to eliminate common roadblocks to bank data sharing, bringing it securely into your accounting, bookkeeping or budgeting software
MYOB has launched an Open Banking system to new customers in early March 2026, with Mastercard as our accredited data recipient. We’re designing the Open Banking system so it’s simple and user-friendly, with minimal setup time. It’s intended to help our customers get the benefits that come with Open Banking as quickly as possible.
Of course, our customers can keep using our classic bank feed solution if that’s what they prefer. The two systems will be running in parallel for the foreseeable future.
Want to be ready when Open Banking becomes available to you? Find out more.
Frequently asked questions on Open Banking
What is Open Banking, and how does it work for small businesses?
Open Banking is a modern data-sharing method that uses regulated APIs and accredited providers to share bank data securely. For small businesses, it’s a way to connect bank information and accounting software more easily, for better financial visibility and more accurate financial information.
Is Open Banking safe to use?
Yes, Open Banking is safe to use, particularly when compared with older bank feed methods. It’s highly regulated under the CDR (Consumer Data Right), which means that banks, software providers and data recipients must follow strict protocols around data privacy, consent and transparency.
What’s the difference between Open Banking and older bank feeds?
The differences between Open Banking and classic bank feeds include a standardised sharing protocol, higher-level security standards and requirements around accreditation for providers. Some legacy systems used methods like log-in sharing or screen scraping to pull data from bank feeds, which have led to inconsistent bank feeds and potential data loss.
However, MYOB’s classic bank feed method doesn’t use screen scraping or log-in sharing, and it’s secure and reliable.
Who can set up a connection?
To set up a connection, you’ll need to have a nominated representative authorised to make changes to your bank accounts. To do this, log in to your bank portal, find the ‘Manage Users’ or ‘User Permissions’ section, and designate yourself or another staff member as the nominated representative.
What if I have multiple accounts or entities?
If you manage multiple business entities and accounts, you may need to go through the setup process for each. However, most banks will provide a central dashboard to help you navigate them all in one place.
What data does Open Banking share?
Open Banking enables the sharing of account information, transaction details, loan information and more. For example, MYOB users can share detailed information about transactions, including date, amount, payee/payer and description.
In most cases, you can’t share highly sensitive information like login details, PIN numbers or other credentials.
Who can access my data through Open Banking?
The only entities that can access your data through Open Banking are the ones that you approve, with explicit, time-limited consent required through your bank account.
Can I turn off Open Banking access at any time?
Yes, you can turn off Open Banking access at any stage.
How do I set up Open Banking in my accounting software?
The process for setting up Open Banking depends on your accounting provider. Generally, you’ll need to grant access through your accounting software, which will redirect you to your bank login. From there, you can grant access to your chosen accounts and transaction history.
How long does setup take?
For most businesses, setting up Open Banking takes just a couple of minutes. However, if you don’t have a nominated representative or if your bank or your account isn’t set up for Open Banking, it could take longer.
Disclaimer: Information provided in this article is of a general nature and does not consider your personal situation. It does not constitute legal, financial, or other professional advice and should not be relied upon as a statement of law, policy or advice. You should consider whether this information is appropriate to your needs and, if necessary, seek independent advice. This information is only accurate at the time of publication. Although every effort has been made to verify the accuracy of the information contained on this webpage, MYOB disclaims, to the extent permitted by law, all liability for the information contained on this webpage or any loss or damage suffered by any person directly or indirectly through relying on this information.