What is Open Banking?
Open Banking gives you, as a member, the ability to share your banking information online with other accredited parties you trust, including other banks. Other companies can use general product information to compare bank products for their customers.
What is the Consumer Data Right?
In 2019 the Australian Government passed new legislation to support the creation of an open data system called the Consumer Data Right. This legislation gives Australian consumers greater access and control over their personal data held by institutions across multiple sectors. In the financial sector, this will be referred to as Open Banking. Data will be shared via an Application Programming Interface (API) - a secure platform that allows data to be transferred with third parties.
When does Open Banking Launch?
RACQ Bank commenced sharing its product information related to credit cards, term deposits, savings and transactional accounts on 1 July 2020. From 1 February 2021 RACQ Bank will share its product information related to home loans for both owner occupied and investment loans, personal loans and car loans. Product information relating to commercial and business loans, and overdrafts will be made available from 1 July 2021.
The big four banks began sharing product information on 1 July 2019 and will provide the option for their customers to share their customer data from 1 July 2020.
Is Open Banking secure?
RACQ Bank is committed to ensuring your data is safe and securely handled via Open Banking. Before a third-party can receive your data, they will need to be accredited by the Australian Consumer and Competition Commission (ACCC). This ensures all accredited organisations comply with strict security and privacy standards, so your data remains safe. We also need to be accredited to receive data from other third parties. We will inform you when this occurs.
In July 2021, you will have the ability to opt-in for sharing your RACQ Bank data with accredited third parties. If you choose to opt-in, you will have the ability to manage what data you share and stop sharing your data at any time.