Today, financial services organizations hold their customers’ data and sharing it with third parties is difficult and complex. For example, bank customers can only share their transactional data by exporting or printing it and then sharing their statements with one third party at a time.
“If you want to go fast, go alone. If you want to go far, go together.” – African proverb
In contrast, open banking will allow customers to share their data seamlessly with accredited third parties of their choice. This will give them more control and transparent oversight of their financial information.
Open banking will facilitate greater innovation and better customer value propositions, leading to a more personalized customer experience that goes beyond traditional banking.
By using data-driven insights, banks and other parties will be able to develop services at lower cost and lower fees while better supporting financial well-being and potentially improving literacy and inclusion. financial and digital.
Open banking will also make it easier and faster for ANZ to work with third parties and realize its ambition to help customers improve their financial well-being. Whether it’s saving money or buying a house; or start, manage and grow a business. There are endless benefits to using data to provide better product matching, easier onboarding, faster loan or credit applications, and smarter choice of products and services.
Maintaining trust in an open world
The confidentiality and protection of customer data is of crucial importance. Although our customers place great trust in ANZ, they are reluctant to share their data and rightly expect ANZ to protect their personal information. ANZ takes this responsibility seriously. As open banking grows, the banking industry will continue to invest in data security, while educating customers about how their data is shared. This will allow customers to make better decisions about how they use their data, while maintaining control.
As happened in Australia, New Zealand has opted for Consumer Data Right (CDR) legislation and we are taking an industry-led approach (as opposed to the UK’s regulatory approach). New Zealand’s CDR legislation will have a similar objective to the British and Australian model protecting consumer rights across a range of sectors including banking, telecommunications, utility providers and government.
The industry-led approach allows banks and other interested parties to help shape the legislation and make it fit for purpose. New Zealand is learning from experience overseas, applying an iterative approach across sectors with the aim of creating a legislative framework that will work for all New Zealanders. There are many ways banks, retailers, fintech companies, and governments can work together to create a sustainable open data ecosystem.
As we continue to develop open banking, I remember this African proverb: “If you want to go fast, go alone. If you want to go far, go together.
If we can learn anything from abroad, it’s that building an open data ecosystem takes time. It’s complex, expensive, and there’s no perfect model to follow. There is also a growing recognition and appreciation of the different perspectives and capabilities that banks and fintech companies bring to the table. We are seeing a convergence between banks, which have built a reliable, safe and secure ecosystem through strong risk management practices, and fintech’s ability to be agile, scale quickly and showcase a new way of thinking. . Such disruptions and innovations can lead to better outcomes for customers.
What will it take to succeed?
Open banking must enable an ecosystem of shared services and value propositions that are consistent, reliable and easy to understand by users. This is not an easy task. When we think back to the implementation of electronic direct debit or the EFTPOS network, in its technical, operational and commercial aspects, these examples highlight the significant collective effort required to develop and deliver this type of service.