Australian Treasurer Scott Morrison has released a study into how best to implement Open Banking, which largely concerns how financial services companies and banks share consumer data.
The major goal of Open Banking is to give consumers greater control of their data, which is hoped will lead to a more competitive financial sector and better deals for Australians.
In a statement, Morrison said: “Open Banking will revolutionise the financial services sector, transforming the way Australians interact with the banking system by giving consumers the right to safely share their data with other banks, other institutions and innovative fintechs and get themselves a better deal.”
The Review into Open Banking report makes 50 recommendations covering the regulatory framework to support Open Banking, what data should be shared and with whom, what safeguards are needed to inspire confidence in data sharing. how data should be transferred and how Open Banking should be rolled out.
Morrison added: “Granting third-party access to a customer’s data will allow rival providers to offer competitive deals, products that are tailored to individual needs, and enhanced services that simplify the choices customers face when accessing banking services.
“It should simplify the process of switching between banks and help to overcome the ‘hassle factor’ that sees customers stay with their current bank even in the presence of more competitive deals elsewhere.”
Morrison also pointed towards how Open Banking should create an environment where companies can better compete for custom by offering personalised deals. This, he said, would help usher in a new era of competition to provide banking services to consumers and businesses. Smaller business, in particular, would benefit from this increased competition.