Pittwater Life September 2020 Issue

Commission followed on
Harper and recommended
a new right for customers
access the economy to direct
data holders to transfer the
consumers’ data in a machinereadable
form to their
nominated representative.
Then in late 2016, the House
of Representatives Standing
Committee on Economics’
review of the four major banks
agreed that there was a strong
case for incurring consumers’
access to their banking data
and to banking product data.
There was in these inquiries
and reports a recognition
of the inequity of the banks
holding data which gave the
banks a substantial amount of
power.
How often has a politician
exhorted constituents to
“change banks when you can
get a better deal”?
The launch of Open Banking
on 1 July, 2020 should allow
customers to search for
a better deal on banking
products.
Open Banking can be used
in many ways; for example
if you are looking to switch
to a new bank for a savings
account or sign up for a credit
card you would usually need
to assemble your banking
history and identification
documents to then apply to
the bank either on line or by
phone. However, with Open
Banking, you could request
your bank to send this
information to your new bank
electronically saving time and
effort on the application.
As of July 2020, customers
of the big banks (ANZ,
Commonwealth Bank, NAB
and Westpac) can request
and share their transaction
account, deposit account,
credit card and debit card data
with an accredited request.
Accredited data recipients
are authorised providers who
receive a consumers’ data
after they have given consent
for it to be shared.
You can begin Open Banking
through the accredited data
recipient’s website or app
and then follow the prompts
to share your data with a
recipient. As follows:
Give Consent – You will need
to first give permission to
the accredited data recipient
provider to access your data.
Perform identity check –
You will then be redirected
through your bank’s website
or app CDR page and from
there will need to verify your
identity.
Confirm data to be shared
– Once your identity is
confirmed and you are given
access to that page, you will
be asked by your bank to
confirm what data you want
to share, how you would like
it to be shared and for what
period.
Share data – Your data
will then be transferred
electronically through an
application programming
interface (API) to the
prospective data recipient in
machine – readable format.
Use the provider’s service
– Once your data is shared,
you will then be directed back
through to the accredited
data recipient’s app or
website to begin using their
service. For example, if
you’ve decided to share
your data with an accredited
budgeting website, you’ll
now be ready to receive
information and alerts based
on your real data.
According to government
and the Australian Bankers
Association key benefits of
Open Banking may include:
(i) helping you sign up more
easily for certain financial
products;
(ii) saving time in switching
providers;
(iii) finding products more
tailored and personalised to
your situation; and
(iv) providing customers to
have a more holistic view of
their finances.
As of 1 November, customers
of the four major banks
will be able to request and
share data from their home
and investment loans, personal
loans, joint accounts,
closed accounts, direct debits
and scheduled payments, as
well as payee data, with accredited
data recipients.
This system is still in its
infancy so it may take time
for customers to learn of the
scheme and to recognise
the full benefits of the
scheme. The ACCC has said
“… the CDR is a complex but
fundamental competition
and consumer reform…” and
is monitoring progress and
development.
Comment supplied by
Jennifer Harris, of Jennifer
Harris & Associates, Solicitors,
4/57 Avalon Parade,
Avalon Beach.
T: 9973 2011. F: 9918 3290.
E: jennifer@jenniferharris.com.au
W: www.jenniferharris.com.au
Business Life
The Local Voice Since 1991
SEPTEMBER 2020 67