Open Banking, Consumer Data and The Future of Financial Services

The Open Banking scheme will be rolled out in Australia next year, changing the way consumers deal with financial services forever.

With these changes, current and future banks’ customers will be able to move their data between financial providers more easily and freely.

At BLOCKLOAN, we want users to own and easily access their data, in the most secure means online. We would also like to help users to be able to potentially monetise their data in the future. Open Banking facilitates this however it is important to have a platform that put the consumer in control, in a secure and easy to use way.

SocietyOne Australia CEO, Mark Jones, spoke with InnovationAus, articulating both the positive and risky side of a system where consumer data flows semi-freely:

“Open banking is a big opportunity for us but it’s also a big threat. It’s a big opportunity because it means we can get access to information that lets us meet customer needs better and faster,”

“The more we understand about our customers, the better we can match products to their needs and do things quicker,” he said.

“On the other side, I think open banking is going to mean that it’s really important we remain trusted, and that people still have confidence in us. As a FinTech industry we need to make sure that we use customer information appropriately for the right purpose, at the right time, and that we don’t abuse their trust. If you lose that trust then you won’t get the information.”

Open banking in Australia is an exciting opportunity for the smaller fintech players. As ACCC mentioned, it will be acutely important that the criteria to be accredited to play in the open banking regime are not set too high becoming unnecessary barriers. Otherwise, this will only serve to support the current incumbents.

“We hope open banking might be the halfway house that will get people comfortable with the idea of using their data and enable them to think more broadly about the value of their other personal information.” says Bill, our co-founder and co-CEO.

Watch this space, as more and more countries make the move to a digitised and open financial landscape.

Article originally published on InnovationAus, read the full article here.