Retirement
Your data is about to get more accessible: Here’s how
Open banking is touted as an initiative that will give consumers more ready access to their financial data, and its roll-out in Australia has begun.
Your data is about to get more accessible: Here’s how
Open banking is touted as an initiative that will give consumers more ready access to their financial data, and its roll-out in Australia has begun.
Speaking with Nest Egg, CEO and founder of Moneytree Paul Chapman discusses how open banking is designed to revolutionise the banking experience for everyday Australians.
What is open banking?
Open banking is centred on the principle of giving individuals greater control of the data that authorised deposit-taking institutions (ADIs) already own or have access to.
Under the current system in Australia, it can be difficult to get a hold of the information that companies have on individuals. This means that financial institutions have a great deal of control over the data provided, meaning it is harder to swap providers.
“The easiest way for readers to understand what open banking is: it is to financial data what the world wide web was to the internet,” said Mr Chapman.
“The internet was around for a long time, but when the web came out it was so much easier for anyone to access it,” said Mr Chapman.
The significance of 1 July
The ACCC has previously announced that as of 1 July 2019, a pilot program for open banking will begin. This involves the big four banks sharing product data about their credit and debit cards, deposit accounts and transaction accounts with individual investors.
What does this mean for the banks?
According to Deloitte, information about a customer’s financial position and transactions has been a key source of competitive advantage for the financial institutions.
The move to open banking will result in the ownership of customer information moving from financial institutions to customers, enabling them to share with third parties, meaning banks lose this advantage.
A seismic shift
The changes enabled by open banking and comprehensive credit reporting will have a significant impact in multiple ways. The impact for customers includes data privacy and financial crime, strategy and pricing, conduct and fairness, artificial intelligence and application programming interfaces, Deloitte suggested.
RELATED ARTICLES
About the author
About the author
Retirement Planning
Majority of Australians anxious about retirement as super knowledge gaps persist, report finds
A new study by Aware Super has revealed that a significant majority of Australians aged 45 and over are feeling anxious about retirement, with nearly nine in ten respondents concerned they will run ...Read more
Retirement Planning
AMP’s MyNorth Lifetime boosts financial security and retirement income
AMP has reported that its MyNorth Lifetime retirement income solution is delivering significant financial benefits to retirees, with an average uplift of 50% in total income. Read more
Retirement Planning
Retirement living sector calls for planning reforms amid declining construction confidence
The Retirement Living Council (RLC) is urging governments to streamline planning systems to boost housing supply, following a decline in confidence in age-friendly construction activity. Read more
Retirement Planning
New laws to boost women's retirement savings through paid parental leave
The Australian Parliament has passed new legislation that will see superannuation guarantee contributions paid on the Commonwealth Government's Paid Parental Leave (PPL) scheme. Read more
Retirement Planning
Planning systems under scrutiny as Australia's ageing population grows
The Retirement Living Council (RLC) has called for governments to address planning system shortfalls in preparation for Australia's ageing population, following the release of new data from the ...Read more
Retirement Planning
Retirement Living Council calls for focus on seniors' housing as population ages
The Retirement Living Council (RLC) has urged governments across Australia to prioritise age-friendly housing solutions in response to new data revealing an ageing population. Read more
Retirement Planning
Macquarie University study reveals benefits of guaranteed income in retirement
A new study by Macquarie University's School of Psychological Sciences has found that mental health, enjoyment, and financial security are key benefits of incorporating guaranteed income and annuities ...Read more
Retirement Planning
Retirement villages offer affordable housing amid market crisis, study finds
Retirement villages are providing a significantly more affordable housing option for older Australians compared to the traditional property market, according to new data released today. Read more
Retirement Planning
Majority of Australians anxious about retirement as super knowledge gaps persist, report finds
A new study by Aware Super has revealed that a significant majority of Australians aged 45 and over are feeling anxious about retirement, with nearly nine in ten respondents concerned they will run ...Read more
Retirement Planning
AMP’s MyNorth Lifetime boosts financial security and retirement income
AMP has reported that its MyNorth Lifetime retirement income solution is delivering significant financial benefits to retirees, with an average uplift of 50% in total income. Read more
Retirement Planning
Retirement living sector calls for planning reforms amid declining construction confidence
The Retirement Living Council (RLC) is urging governments to streamline planning systems to boost housing supply, following a decline in confidence in age-friendly construction activity. Read more
Retirement Planning
New laws to boost women's retirement savings through paid parental leave
The Australian Parliament has passed new legislation that will see superannuation guarantee contributions paid on the Commonwealth Government's Paid Parental Leave (PPL) scheme. Read more
Retirement Planning
Planning systems under scrutiny as Australia's ageing population grows
The Retirement Living Council (RLC) has called for governments to address planning system shortfalls in preparation for Australia's ageing population, following the release of new data from the ...Read more
Retirement Planning
Retirement Living Council calls for focus on seniors' housing as population ages
The Retirement Living Council (RLC) has urged governments across Australia to prioritise age-friendly housing solutions in response to new data revealing an ageing population. Read more
Retirement Planning
Macquarie University study reveals benefits of guaranteed income in retirement
A new study by Macquarie University's School of Psychological Sciences has found that mental health, enjoyment, and financial security are key benefits of incorporating guaranteed income and annuities ...Read more
Retirement Planning
Retirement villages offer affordable housing amid market crisis, study finds
Retirement villages are providing a significantly more affordable housing option for older Australians compared to the traditional property market, according to new data released today. Read more
