26 March 2018
Australia’s banking industry is committed to the success of open data and believes that if done properly it can empower customers to achieve better deals and make more informed choices.
While the Australian Banking Association believes that its introduction can be a positive for consumers it has highlighted some areas that need a greater level of detail and discussion before its introduction.
Australian Banking Association CEO, Anna Bligh, said it’s vital that customers understand the process and that their data remains safe and secure.
“Our number one area of concern is around customers understanding what they are consenting to and what their data will be used for. Banks take data privacy and security very seriously,” Ms Bligh said.
“Just recently it was revealed that data from a social media platform was being used for other purposes, we do not want to see a repeat of this with the introduction of open data in Australia,” she said.
The industry also believes that a 12-month time frame is too short to properly implement such an important reform.
“The banking industry believes that rules and standards must first be designed to ensure consistency across all industries that will eventually take part in the sharing of data,” Ms Bligh said.
“Customer safeguards and appropriately designed security and standards are vital to the scheme’s long-term success.
“Along with a number of other industry bodies the ABA are calling for a more appropriate timeframe to properly implement this reform,” she said.
In its response to the Farrell Report the ABA has highlighted several key areas to ensure that the introduction of open data is a success and protects customers, this includes;
- A phased introduction
- Reciprocity principle, particularly as it applies to sharing across industries
- Clear service levels on how data is to be made available
- Customer control over data should be paramount.
For a copy of the submission click here.
Contact: Rory Grant 0475 741 007
Access to credit opens up opportunities and fulfills aspirations. Getting it right requires the right balance between consumer protections and the flow of credit.
Interviewed by AM’s Peter Ryan, ABA CEO Anna Bligh talked about the substantial drop in loan deferrals since their peak during the pandemic, falling from 900,000 to 300,000.