Anna Bligh, CEO, Australian Banking Association
Angus Sullivan, group executive of retail banking services, CBA
Sarah Court, commissioner, ACCC
Gareth Gumbley, CEO and founder, Frollo
investing in getting accredited, the next step for organisations would be pulling the data and understanding how they could compete with it. “Now that the Consumer Data Right is live, the next step for everybody is how to leverage the data for a competitive advantage. Given our experience of testing alongside the banks, we’re in a
position to educate and guide other businesses looking to comply, compete, innovate and leverage the opportunities available under the system,” said Gumbley. “Once these organisations become new ADRs, we’re also in a unique position to help them actually collect the CDR data through our SaaS technology solutions. We’re currently
WHO CAN SHARE DATA THROUGH OPEN BANKING?
To be eligible to share data, a bank customer must be:
at least 18 years of age registered for online personal banking registered for SMS Protect
one of the only organisations to have technology built specifically for open banking in Australia, which makes it incredibly valuable for new ADRs who don’t have the resources to invest in their own solutions.” Gumbley added that open banking had triggered a massive shift in the way organisations think about consumer data, which would benefit Australians. “The Consumer Data Right system gives organisations the ability to be faster, more transparent and more secure. We’re moving into a world where we can give users a real-time view of their money and will soon be able to confidently move them to the best products available with a couple of clicks,” Gumbley said. The four major banks have confirmed their commitment to the initiative, with Westpac announcing that eligible customers of the bank are now able to share their credit
and debit card data, as well as deposit and transaction account data, with accredited third parties. Westpac acting chief executive, consumer, Richard Burton said Westpac was proud to be able to switch on open banking for customers. “This marks an important milestone for open banking, with customers now having the ability to share their data. Westpac supports enhanced data sharing in banking as it will help drive competition and customer choice,” Burton said. “We have been working hard throughout the entire process to ensure the system is robust and secure for customers. Enhanced data sharing will give customers more confidence they are getting the best deal, and help make it easier to find the best-value service that meets their needs.” Lenders and banks have invested significant resources in getting open banking ready. Rachel Slade, group executive, personal banking at NAB, confirmed the bank had “invested heavily in our technology foundations and in our people” to build a customer experience that focuses on ensuring the safety and security of customer information. “A competitive and innovative financial services industry is critical to ensuring great customer outcomes and the growth of the economy more broadly, with opportunities for further innovation and new business models to be established,” Slade said. “It will take time for customers to develop familiarity, trust and understanding in using open banking. We’re continuing to prepare for future phases that will allow our customers to share more of their data, should they choose to do so, and we will continue to invest in the open banking regime as future phases are developed, while ensuring that speed is not prioritised over safety. This is critical to building confidence in the system.” Angus Sullivan, CBA’s group executive of retail banking services, added that with cyber security becoming a growing, significant issue, the constant threat of online fraud underpins the need for consumers, organisations and government to take data and account security seriously. CBA is “continuing to invest more than $5bn in technology in the next five years” to fight this battle, he added. While just the four major banks will be part of the system initially, other banks are scheduled to join within the next 12 months. AB www.brokernews.com.au
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