24 January 2019
In its submission to the first Privacy Impact Assessment of the Consumer Data Right released today Australia’s banks back strong privacy settings to protect customers and have identified the pilot, due to commence this year, as an important test.
The Consumer Data Right, a building block of the Open Banking reform, is an important step in empowering customers to safely use their data to compare and access banking products that are right for them. Ensuring the right privacy settings will be an ongoing piece of work and the industry is committed to working in collaboration with the Government until the launch of access to consumer data in February 2020. The pilot program to commence on 1 July 2019 will provide a useful opportunity to test these settings and the industry has asked for the protection of privacy to be a key focus for the pilot.
CEO of the Australian Banking Association Anna Bligh said that the Consumer Data Right, a building block of the Open Banking initiative, would have a revolutionary impact on competition in the industry, however safety of customer’s data should be a top priority.
“The industry has been an advocate and partner of the Federal Government’s initiative to set in stone a customer’s right to direct their data to be shared with others so they can get the maximum benefit from it,” Ms Bligh said.
“The Open Banking reform, of which the Consumer Data Right is an important building block, will increase competition in the industry with customers the big winners.
“Privacy and protection of data should be an important priority which is why the industry is seeking further testing during the pilot program to ensure we get this right.
“We support the PIA’s recommendations on measures to reduce risks to customer’s data and the pilot program will help inform further initiatives which will boost security,” she said.
For a copy of the Australian Banking Association submission click here.
Contact: Rory Grant 0475 741 007
This is the version of the Banking Code of Practice that takes effect on 1 March 2020. It is currently awaiting ASIC authorisation.
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