Transforming Open Banking compliance with Wych’s innovative Data Holder Testing
Background: Our client is a large leading financial services provider based in Australia, with a global presence in 34 markets. They ran an RFT process to find the best partner to deliver Data Holder testing services, and selected Wych.
Consumer Data Right (CDR) regulations in Australia require the secure sharing of consumer financial data with approved third parties. Holders of banking licences have had to comply with these regulations beginning with Phase 1 in 1 July 2020, while non banks and financial services providers are required to comply by Novemeber 2024. Participation in the CDR regime is expected to ramp up significantly in 2024 as providers get themselves ready to comply with the regulatory deadlines. In addition, it is widely expected screen scraping will be eventually phased out as a source of data.
The Challenge: As a Data Holder, our client must ensure compliance with all regulations. CDR compliance testing encompasses hundreds of specific test cases and requires simulated bank data for realistic scenarios, testing of consent flows, and registry services. Specialised knowledge in CDR standards and error detection is vital, exceeding the abilities of typical testing providers.
There are two particular challenges: the use of live production data requires accreditation as a data recipient and secondly, if the live production data does not meet the required standards, then fines can be levied by the regulator.
The Solution: Wych provided a complete all-in-one testing service enabling Data Holders to seamlessly perform rigorous testing across non-production, pre-production, and production environments.
Key features of Wych Data Holder Testing include:
All-in-one
Wych combines a state-of-the-art technology platform, codified scenarios and extensive testing experience to offer a full-service solution.
Versatility
Wych enables clients to run test scenarios in any environment, whether it's their own development setups or pre-release environments.
Efficiency and Compliance
Testing is proactive so clients can preemptively identify and rectify issues and eliminates the need for reactive measures.
Production Verification
Clients gain access to accredited production data, ensuring comprehensive testing coverage.
Simplified Accreditation Process
Wych enables clients to use its own accreditation in the testing process, meaning they can simply press "go" and receive comprehensive testing results.