In February, New Zealand hosted the Digital Nations 2030 to discuss what is required to become a truly digital nation by 2030. Open Banking is a critical first step, but where is it on the Government’s agenda?
Data is now more valuable than oil, according to The Economist, Forbes and the Financial Times. It fuels the digital economy and has made Apple, Amazon, Google, Facebook and Microsoft among the world's most valuable businesses.
The propensity of customers to hand over their personal data - in exchange for free access to services - has propelled the tech giants' exponential growth. They are now leveraging that data to insert themselves into financial transactions between the banks and the banks' customers, disrupting the retail banking value chain.
Of course, the banks themselves are sitting on rich reservoirs of data, such as their customers' personal and demographic information, income and expenditure, credit history and buying behaviour. However, many are struggling to use that data in innovative ways because they are hindered by complex core banking systems and regulatory compliance.
Meanwhile, agile FinTechs – which have developed innovative, low-friction products and services - need access to the banks' data to power up their solutions.
No wonder that a global battle has erupted for access to banks' customer data. Who owns customer data – and who should own it? Who should be able to access it? How much should they pay for it? And what say should customers have in any of this?
Enter Open Banking.
To read Bell Gully's Open Banking update, click here.
This publication is necessarily brief and general in nature. You should seek professional advice before taking any action in relation to the matters dealt with in this publication.