Open Banking must be anchored in trust: RACQ

Open Banking changes need to be more than just rhetoric, they need to empower the customer, RACQ Bank told a national conference this week.

The Consumer Data Right, would make it easier for people to access, move and share their data with other businesses and would be rolled out in the banking sector to increase competition and help people find a better deal and save money.

At an Open Banking forum in Melbourne, RACQ Bank CEO Michelle Bagnall said there would need to be a clear and demonstrated value-added benefit for customers to feel confident to share their data and ultimately switch banks.

“When we asked Queenslanders about their perceptions of fairness and frustrations with banking, the overwhelming response was that banks were more concerned with protecting ‘the asset’, than the relationship,” Ms Bagnall said.

“They also told us they often felt forced to accept processes which served the bank’s interests rather than their own.”

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Ms Bagnall said while most of the industry would be focused on how to integrate open banking into existing bank processes, RACQ’s priority would be to ensure members got the very best from the change.

“Helping our members navigate these changes and understand what being in control of their own data means, will be the focus for RACQ,” she said.

“It’s going to come down to trust. People have trust in the general banking function, but limited trust in the big banks behaving with their best interests at heart.

“Financial institutions are going to have to prove to the customer they can be trusted.”

Ms Bagnall said RACQ Bank would take a long-term view anchored in advocacy and fairness for its members.

“Protecting the trust our members have in us will be priority number one. We have a trust rating which currently sits at 77.9 percent, so we’re starting from a very good position which we want to build on,” she said.

“We’ll demonstrate this by walking them through the open banking changes, protecting their data through our core competencies; and upgrading our core banking technology to be Open Banking ready in 2020.”