At Credabl, we stay focused on maximising your financial options today, while keeping a close eye on trends that may change the financial landscape in the future.
When it comes to your financial future, we believe that more options and greater transparency leads to better decision-making. Better decision-making, in turn, leads to better outcomes and a healthier portfolio in both your business and personal life.
In the world of banking, a major transformation has already begun: one that has the power to greatly benefit professionals and business owners alike. General Data Protection Regulation’s (GDPR) official implementation occurred on 25 May, 2018 and with it, has created a new era of policy regarding personal data across sectors, including financial.
Now, stricter standards are in place to protect your personal information and to require companies that you do business with to disclose this data upon request.
Open Banking Australia is a new financial network promulgated by the Reserve Bank of Australia.
This network is set to go live in July 2019 and defines the roles of network participants in new terms that fit our modern digital age.
Members of this network, also in compliance with GDPR, are referred to as ‘holders of data’, ‘owners of data’ and ‘recipients of data’. Like any other network, Open Banking will maintain strict standards for participation and protocols of data exchange.
The Australian Government recently concluded a comprehensive study of Open Banking. We encourage you to review the final report here. One notable portion of the report declares the following:
“By giving customers greater access to and control over their banking data, Open Banking has the potential to transform the way in which customers use and benefit from the banking system.”
While Open Banking does present new questions as to the future of finance in Australia and the current solutions provided by traditional banks, Credabl stands firmly behind the findings and sentiments of the report as a whole.
Increased consumer control
In a significant shift, data ownership is now transferring from banks and companies to consumers. Since consumers generate their own consequent data, it seems natural, albeit belated, for this transference in ownership to occur.
Consumers, now identified as ‘owners’ of their respective banking data, hold exclusive authority to permit access to third parties.
Open Banking mandates that consumers be fully informed as to the nature and extent that their data may be admitted to third parties, with new time restrictions and other terms of compliance also enforced.
Of course, robust security protocols are imperative to allow these technologies to work optimally. As such, these services implement 256-bit encryption to secure data while stored and while in transit.
Frequent security audits and ongoing analysis of how to enhance security further, allows companies like Credabl to enjoy the confidence that these tech-centric solutions are not only appropriate for the financial sector, but also a boon to individual consumers, professionals and businesses.
There are still a number of unknowns that won’t become evident until after the Open Banking network goes live in 2019. Certainly, many services that aren’t available to consumers at cost-effective rates now, will become available under Open Banking. Specific costs and services will eventually emerge as systems are rolled out and refined.
The value of Open Banking to consumers and society at large, ultimately resides in the ability to analyse data from more perspectives to identify new trends and service offerings that may not have otherwise emerged.
Consumers can expect to enjoy new benefits as products and services evolve to better meet their needs in an Open Banking environment.
An efficient and transparent network will create fewer barriers to entry for new providers, supporting a competitive and innovative financial sector.
To learn more, we invite you to read RBA’s Final Report – Review into Open Banking in Australia here.
For questions or comments, our financial professionals can be contacted here and are standing by!