ABA highlights key areas to ensure introduction of open data is successful

The Australian Banking Association (ABA) has said that its top area of concern was for customers to understand what they are consenting to and how their data will be used as the banking industry remains committed to the success of open data. It emphasised some areas that require a greater level of discussion and detail.

Australian Banking Association CEO Anna Bligh stressed that it is important for customers to understand the process and that their data remains safe and secure. The top area of concern revolves around customers understanding what they are consenting to.

“Just recently it was revealed that data from a social media platform was being used for other purposes, we do not want to see a repeat of this with the introduction of open data in Australia,” Bligh said in a media release.

The banking industry aims to guarantee consistency across all industries that will take part in the sharing of data. It believes that standards and rules must first be designed.

Bligh said that appropriately designed security and standards are important for the long-term success of the scheme. She said that the ABA, along with other industry bodies, calls for a more appropriate timeframe to properly implement such an important reform.

The ABA has emphasised a number of key areas to guarantee that the introduction of open data is a success and will protect customers. These include a phased introduction and reciprocity principle, specifically as it applies to sharing across industries. Clear service levels on how data is made available and paramount customer control over data are also highlighted.

Australian banks believe that if delivered properly, open data can empower customers to use data to make the best choices for their preferences and circumstances. The ABA has also commended the Farrell Report for its thorough examination of open banking. It believes that the report correctly focused on customers’ needs and wants when weighing stakeholders’ needs.

Earlier this month, the ABA called on the government to ensure that banks can appropriately explain a customer’s credit history in detail, specifically if the customer has experienced financial hardship and missed a payment. “As with all major reforms, it’s important it’s done right with no discrimination against people who have experienced financial difficulty but have worked with their bank to find a solution,” Bligh said, adding that people can fall into financial hardship for several reasons.