According to Australian Banking Association’s executive director, Christine Cupitt, the legislation is critical in ensuring the reform moves forward and is a safe and secure system prior to its launch next year.
“Giving customers greater access to their data will make it easier and simpler to shop around for a better deal on a credit card, followed by home loans and other banking products,” Ms Cupitt explained.
She noted that open banking will provide customers with an ability to share personal information with accredited institutions such as banks, and enable them to find a better deal on their banking products.
Calling open banking “a win for customers”, the executive director credited the scheme with increasing competition and making it easier for individuals to get the best deal possible from their bank.
She noted that “thorough testing of this regime is vitally important to the success of this reform and to ensure Australians trust and use it”.
Adding to the open banking debate, Experian’s Australia and New Zealand executive general manager of credit services and decision analytics, Poli Konstantinidis, said Australians will benefit from open banking once they are educated on the subject.
“There is an immediate need for improvement in consumer education on open banking and financial literacy through government and industry investment, to ensure open banking is adopted quickly and effectively,” he explained.
According to him, “Australian businesses need to properly prepare themselves for the new shift to a data sharing ecosystem in Australia”.
Cameron Micallef is a journalist at Nest Egg, writing primarily about personal wealth and economic markets.
Prior to this, Cameron worked for Australian Associated Press. He graduated from the University of Wollongong with a double degree in communications and commerce.