22 September 2017
The banking industry has developed a recipe for a successful open banking regime in Australia that will revolutionalise customers’ banking experience and enable them to make more informed choices.
“Open banking puts power into the hands of customers, giving them unprecedented access to their own data,” Australian Bankers’ Association Chief Executive Anna Bligh said.
“At the click of a button, Australians will be able to directly share their transaction data with other banks or financial services. Customers can use their data to do product comparisons and get the best deal.
“Customers will also be able to feed their data into personal financial management tools to help them manage their money,” she said.
“Australia’s banks will fully participate in the open banking regime to provide more innovative and personalised products and services to customers,” Ms Bligh said.
The banking industry’s submission to the Farrell inquiry to be lodged today will:
- Put forward an industry-wide model to implement open banking, one that will give customers confidence their data is being shared securely and with their informed consent.
- Include a phased approach by banks to sharing data over the next two years, subject to the development of enabling legislation.
- Propose an industry working group as a vehicle to get the new regime moving.
“Australia’s banks have learned from the lessons overseas and as the first cab off the rank for industry data sharing will pave the way for others,” Ms Bligh said.
“Eventually, data sharing will bring benefits to Australians not only in banking but across the economy in industries like telecommunications and energy,” she said.
Contact: Stephanie Arena 0477 470 677
“Australian banks are certainly better equipped now than they were in the GFC. They’ve got 2 to 2.5 times the capital reserves put aside for a rainy day than they had in the GFC”
“The Australian Banking Association (ABA) welcomes the agreement reached today on the proposed safeguard mechanism reforms, given it paves the way for the passing of a critical piece of legislation for Australia.
“This is about engaging with the entire banking ecosystem in order to ensure the accessibility of the sector’s services are best serving our diverse community now, and into the future.”