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What are the implications of open banking

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#1 Literary Lemur

Posted 14 May 2019 - 10:08 PM

I heard a snippet of the news mentioning that we are moving to an open banking system.

This will mean all bills and transactions will be openly displayed?

Who will have access to the information?

How will it impact the average person?

#2 WaitForMe

Posted 14 May 2019 - 10:50 PM

No, your data won't be freely available. You will need to give permission for an organisation or individual to access it.

The concerns from a privacy perspective, is whether to trust that third party with your data. And also whether you'll feel coerced into handing it over - we can't tell you our rate until you hand over your data.

#3 lizzzard

Posted 14 May 2019 - 11:37 PM

I suspect there will be a very gradual shift towards open banking but much like the introduction of mobile phones, eventually the downsides of avoiding it will probably outweigh the upsides. I was talking about this to DH who is scared of the increased ‘scrutiny’ around expenses in the context of credit assessments- in an open banking model, the question is whether the fear of increased scrutiny is worse than the administrative pain of gathering all the paperwork yourself? I hate admin more than anything in this world so for me it’s a no brainer - if I had to do nothing but sign a form to give permission for them to see everything in return for no paperwork, I’d be signing in a second! Sure, i have less control...but I also work in a compliance related field and am quite comfortable trusting that if a bank had real data (as would happen in an open banking model) and said no to something like offering me credit.... I probably shouldn’t get the credit!

As for data security, there are real risks on this front but i am pragmatic about that too - data security issues are literally everywhere and growing exponentially it feels like. I don’t think open banking adds anything materially different, and I’m sure there will be every effort made to control and manage it like every other regulated industry is doing with all their other information security issues right now.

#4 SynchronouslyIdle

Posted 15 May 2019 - 06:26 AM

I have only started reading about open banking since the ABC article recently (https://mobile.abc.n...ac-anz/11108496).

With my limited knowledge I would be very unhappy if I had to expose my credit card history to get a credit card, loan, health insurance, life insurance etc.

Also I hope that 3rd parties won't be able to add clauses to their conditions of products that they can share my data with other 3rd parties.

I really need to do more reading to see if my concerns are justified though.

#5 WannabeMasterchef

Posted 16 May 2019 - 12:53 PM

View PostWaitForMe, on 14 May 2019 - 10:50 PM, said:

No, your data won't be freely available. You will need to give permission for an organisation or individual to access it.

The concerns from a privacy perspective, is whether to trust that third party with your data. And also whether you'll feel coerced into handing it over - we can't tell you our rate until you hand over your data.

Far out, trying to get a quote for power prices without giving them all my personal details was hard enough.
And if I had given my mobile number no doubt Id be hassled by associated telemarketers :(

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