Moneytree urges banking transparency

25-Sep-2017

By Megan Tran

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Data facilitator Moneytree has welcomed the Australian government’s review on open banking and has called for the framework to have greater privacy and transparency in its submission to the evaluation process.

Moneytree chief executive Paul Chapman said the firm believed appropriate regulation would empower and protect people and emerging enterprises as the producers and owners of banking data, while also incentivising innovation in financial services.

Specifically Moneytree suggested people should be allowed access to primary sources of data as well as having the ability to share this information with third parties of which they approve.

The firm continued to recommend all types of consumers be treated equally within the framework.

A third recommendation was for an opt-in position to share data be the default standard with an opt-out ability at any time allowing information sharing arrangements to end.

A call was also made for the creation of a registry of authorised providers to minimise the risk of unauthorised access to information. It was further suggested a mandatory global standard level of privacy certification be imposed for those included on the registry as well as adequate levels of insurance and tested security implementation.

In addition Moneytree wanted data standards to be determined by the providers and recipients of the information stating regulators should avoid fixing exact technical standards as they had the propensity to become easily outdated.

“These standards are critical for building consumer trust. No open banking system will be successful unless consumers understand and trust how their data is going to be used – especially financial data,” Chapman said.

Moneytree’s indications were a response to the government’s open consultation which was finalised last week.

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