Currently, the government is seeking advice to explore how open banking – in which bank customers have better access to and ownership of their personal data – could potentially transform the banking system, the Treasury said in a statement.
“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,” the statement said.
“It will also create further opportunities for innovative business models to drive greater competition in banking and contribute to productivity growth.”
The independent review is part of the government’s Banking Executive Accountability Regime (BEAR) – announced in the federal budget in May - which is intended to deliver an “overhaul of the financial system and [bring] forward a comprehensive package of reforms to strengthen accountability and competition.”
The review will be headed by Scott Farrell, a partner at law firm King & Wood Mallesons.
Mr Farrell has had over 20 years’ experience in financial markets and law and is a member of the government’s Fintech Advisory Group.
The government has also released terms of reference for the review, with the review itself due at the end of the year.