Open Banking
Giving you control over your data.
What is Open Banking?
In 2019, the Australian Government passed Consumer Data Right (CDR) legislation, often referred to as ‘Open Banking’ — a regulatory framework designed to give customers greater choice and control over their financial data.
It puts the power back in your hands by allowing you to grant (or rescind) consent at any time when it comes to your bank sharing your financial information with authorised third-party providers.
How it works
Open Banking is a way of enhancing consumer choice and ensuring data protection, while also fostering innovation and collaboration in the finance industry. It gives organisations accredited by the ACCC permission to receive generic data pertaining to: transactions, savings, fixed term deposits, loan and credit card products including features, eligibility, rates and fees.
How it benefits you
In lots of ways, Open Banking in Australia represents a revolution in data management, financial accessibility, and consumer empowerment, offering mutual benefit for customers and banks alike.
Designed to help financial institutions and providers to compare banking products and find the best one for you, Open Banking is about giving you more control, convenience, and choice when it comes to managing your finances. Here are some of the major benefits.
Why Open Banking?
Greater confidence and control
At its core, Open Banking is designed to provide consumers with a higher level of control over what data you do and don’t share, with whom, and for how long.
Improved accessibility and personalisation
By gaining access to data across different financial institutions, and using it to gain a greater understanding of your needs, Summerland Bank can better tailor our innovative range of financial products, loans and services to suit you.
Gets you the best deal
Open Banking drives competition in the banking sector. With increased competition, you’re more likely to find better rates and terms as banks strive to attract and retain customers.
Simplifies and streamlines the process
Open Banking gives financial institutions a way to streamline money management, and act on loan approvals and account switching in much shorter timeframes.
Enhanced security
While also encouraging competition and innovation, Open Banking comes with stringent security and regulatory oversight to protect your data and interests.
Puts power back in your hands
By giving you insights into how your financial data is being used, and giving you control of what and how you share it, you can achieve a more informed level of decision-making and empowerment over your finances.
How do you control your data?
While authorised data recipients have strict requirements for collecting, accessing, storing and sharing your information to ensure your data remains safe, under the legislation, you can:
- Request us to stop sharing your data with other third parties at any time
- Request a third party to delete your data at any time
- Choose and minimise which data to share and what to keep private
- Correct errors in your data at any time
While Open Banking is designed with your security in mind, approach with caution and regularly review the permissions you grant to third-party providers. This helps to ensure you only deal with reputable and authorised entities. Additionally, regularly monitor your financial accounts for any unusual activity, just as you would with traditional banking.
Security measures in place
Open Banking is designed with robust security measures and privacy protections to help ensure the safety of your financial data. Here are some ways we work hard to protect your safety.
It’s based on consent
Open Banking operates based on your explicit consent. You must grant permission for your financial data to be shared with third-party providers. Without your consent, no one can legally access your data.
Strong Data Encryption
Open Banking mandates the use of strong encryption techniques to secure the transmission and storage of financial data. This encryption helps protect your information from unauthorised access.
Authentication
To access your data, third-party providers undergo a secure authentication process with the ACCC. This helps to ensure that only authorised entities can retrieve your information.
Regulatory Oversight
Open Banking is subject to regulatory oversight and Australian authorities impose strict security and privacy standards to safeguard consumer data and interests.
Data Minimisation
Open Banking principles encourage the sharing of only necessary data. Providers should access and use only the specific data you’ve consented to, limiting exposure of sensitive information.
Want to know more?
Contact us anytime
More information on the Consumer Data Right (CDR) and open banking policy
For more information about the Consumer Data Right (CDR), please visit the Australian Competition and Consumer Commission website or email our team at [email protected].
Our CDR Policy
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