After more than a year of detailed research and industry consultation, the Australian Government has now released its review into Open Banking in Australia conducted by Scott Farrell of King Wood Mallesons.
As one of the biggest shifts in the banking sector for many years, the review has recommended seismic changes be made in the way banks (and soon utilities and telecommunications) treat their customers’ personal data, identities and digital attributes.
This represents the formal beginnings of Australia’s move to an open data economy and the establishment of the Consumer Data Right outlined in the previous report from the Productivity Commission in 2017.
It also reflects similar regulatory changes in personal data laws in other geographies such as Europe’s General Data Protection Regulation (GDPR), and addresses the growing global sentiment that personal data is now a new emerging asset class for the individual.
Meeco has developed a summary review of the key recommendations, and outlined how financial institutions can harness the changes to create increased customer value.
The proposed regulation provides the opportunity for the financial sector to explore new business models, focussing on customer innovation, rather than view it as compliance burden.
Meeco has been at the forefront of the emerging personal data economy since 2012 having developed a platform suite of APIs and a Consent Engine, which enables customers to aggregate personal data across their life including identity, social, IoT, finance, health and lifestyle, and share it directly with the people and organisations they trust.
For enterprises, Meeco enables trusted data ecosystems to develop through existing B2B relationships, where new business models can be developed in partnership with customers.
To support the proposed regulatory changes, Meeco has established an Open Banking Sandbox. This established testing and iteration environment is designed for financial institutions to trial new consent based customer journeys. The objective is to help organisations design for increased customer trust, along with meeting the compliance requirements of the proposed regulation.
“Our aim is to enable customers to participate in the new open data economy and help organisations develop new commercial opportunities that create mutual value.”
The Meeco Me2B Labs methodology and innovation sandbox have already been utilised by several leading European Financial Services organisations. There are a range of existing use cases to test including on-boarding and know your customer (KYC).
Download a version of the Meeco Open Banking Review below: