Open banking a big win for consumers

A recent survey has found that Australians believe that banks are better at keeping their personal data secure than government agencies, online retailers or social media platforms.

And while men and women were fairly even, the Galaxy research found that those in regional centres trust their bank to protect their data even more than their metro counterparts (70 per cent regional vs 61 per cent for metro areas).

Those with the highest level of trust are aged between 40 and 49 years old.

Australian Bankers’ Association CEO, Anna Bligh said banks take data security and privacy very seriously, spending millions to ensure their systems are safe.

“With the introduction of Open Data across the Australian economy next year, consumer privacy and security is front of mind.

“Open banking will enable customers to get more value out of their data by opening it up to be easily shared with other banks and finance providers. In the future, a customer will be able to open their mobile phone app and with the touch of a button, direct their bank to transfer their data to another finance provider.

“Giving customers the ability to share their data more easily will help them to shop around for deals and get the best product for their needs.

“This represents a significant change from the current system and puts the power squarely in the hands of the customer, allowing them to decide how and when, or if, their information is shared,” she said.

Open data will also make comparing bank products and services easier as financial institutions standardise such things as terms and conditions and pricing.

Small businesses can also benefit from being able to share their transaction data with their accounting software packages. Bank transaction data could be tied to their invoices and receipts so businesses can readily track their finances.

The ABA will host its second Open Data Symposium today, aimed at continuing the discussion around the benefits to consumers and what the industry needs to do to prepare for the change.

The Galaxy research surveyed 1000 Australians online earlier this month for the Australians’ Attitudes to Digital Innovation & Data Security poll.

Contact:

Kelly Stevens 0497 577 133 

Nathalie Samia 0410 348 531 

@austbankers

bankers.asn.au