Government paves the way for open banking

Third parties could soon be given greater access to banking data under a proposed open banking system regime.

The regime, announced for review by Federal Treasurer Scott Morrison yesterday, will seek to open up consumer and third party access – with consumer consent – to customer and product data traditionally held by banks.

In a statement, Morrison said that giving Australian consumers greater access and has the potential to “transform the way in which Australians interact with the banking system.”

“Greater consumer access to their own banking data and data on banking products will allow consumers to seek out products that better suit their circumstances, saving them money and allowing them to better achieve their financial goals. It will also create further opportunities for innovative business models to drive greater competition in banking and contribute to productivity growth,” he said.

Treasury also noted that greater access will “increase price transparency and enable comparison services to accurately assess how much a product would cost a consumer based on their behaviour and recommend the most appropriate products for them.”

“It will also drive competition in financial services by changing the way Australians use, and benefit from, their data,” Treasury added.

The independent review, led by King & Wood Mallesons partner and FinTech Advisory member Scott Farrell, will seek advice on implementing a regime and consult broadly with the banking, consumer advocacy and fintech sectors.

Interested parties are invited to provide input to the open banking review, with a report due by the end of 2017.

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Source: Government paves the way for open banking | Financial Standard