Is Open Banking safe?

Open Banking is a growing initiative that is aimed at improving consumer services and businesses.

Put simply, it gives consumers and businesses control over their data and the services that their banks provide. As part of Open Banking, users can share their information with accredited third parties and gain access to a wide range of personalised services and products. For example, banks can provide personalised budgeting advice based on your spending and lifestyle needs, or recommendations for other financial products that you are eligible for.

Some examples of financial data that customers may choose to share include:

• Personal information such as their phone number, email and address
• Details of their account balances and transaction details, including amounts spent
• Information about financial products, such as interest rates and fees

One of the questions that sprang to mind when Open Banking first made its way into Australia’s banking landscape was: Is Open Banking secure and safe?

The short answer is yes. Open Banking is just as safe as using online banking. Open banking is one of the most secure ways to share financial data.

As a consumer, you have control over:

• What information is shared
• Which providers you allow to access your information
• For how long they will have that access

Accredited open banking providers in Australia go through a strict accreditation process with the ACCC and heavy regulation, so rest assured, you are in safe hands.

Accredited open banking providers:

• Can only access your account if you have given it your express consent, and must only access the data or initiate payments that you have given specific consent to;
• Must destroy or de-identify data if it is no longer needed; and
• Must comply with the Notifiable Data Breaches scheme, including by informing you and the Australian privacy regulator (The Office of the Australian Information Commissioner) about any serious data breach.

Security and privacy is a key part of Open Banking and online payment journeys are fast becoming the norm. As more innovative products and services powered by Open Banking data hit the market, it will become a key priority for businesses to tap into Open Banking to gain a distinct advantage over its competitors.

To understand how Fiskil can help your organisation embrace the opportunities of Open Banking, get in touch!