Open Banking - What Does It Mean to You?

enzioFirenze on 07/11/2018 - 09:59
Last edited 07/11/2018 - 12:04

With the impending changes to open banking to take place after July 2019, I figured it's time to have a discussion about what Open Banking mean to OzB community. For lack of a better definition, open banking democratizes your data so far held by the banks and allow you to share this data with third parties. It's likely be governed by a UK like system where open banking is already available. Now when this becomes available, what would you expect out of open banking? are there any nifty uses we as OzBargainers can use open banking for? What concerns if any would you have around it?

As for me, I'm looking forward to having all my transactions in one place so I can track all the netflix subscriptions I've gotten with my numerous credit/debit cards ;)

PS: This is a good place to start reading about open banking, but the crux of it is this: Open banking will allow you to direct your data to be sent to other banks, financial institutions and authorised organisations when you want to. You control who holds your data and how it is used.

Financial

Comments

  • pantsparty on 07/11/2018 - 10:17
    +13

    I don't understand what open banking is or why you have so many netflix subscriptions.

    • HighAndDry on 07/11/2018 - 10:48

      Netflix has free trial once per user. But they track 'user' by payment method. Different card = different user on Netflix system = more free trials.

      Or at least I think that's what OP meant.

      • talismansa on 07/11/2018 - 11:05
        +6

        Isn't it easier to just pirate the shows at that point?
        This logic of it's not stealing if it's a loophole is a bit like "it's not sex if it goes in the butt"

        • HighAndDry on 07/11/2018 - 11:11
          +1

          Just a disclaimer: I'm not even sure that that's what OP's doing.

          But - Netflix has its own advantages over pirating in terms of convenience, tracking where you're up to, account management, etc.

          As to whether it's stealing or not? Well no - it's not "stealing" for a lot of reasons, the biggest one being that it's just a contractual breach. Netflix isn't losing anything, you're not taking anything.

        • Quantumcat on 07/11/2018 - 11:13

          Maybe the convenience of having a bunch of shows at his fingertips outweighs the small inconvenience each month of activating a new free trial (piracy being less convenient than that)

          • talismansa on 07/11/2018 - 11:25
            +3

            @Quantumcat: I'm sure applying for a new credit card to get 1 month of free netflix is way more hassle than just downloading a few shows.

            I guess when you have a lot of time to watch netflix, $13/month is worth a lot of time.

            • Quantumcat on 07/11/2018 - 11:44
              +1

              @talismansa: I am pretty sure he wouldn't be getting new cards primarily for Netflix. It would just be a side benefit. The inconvenience is just making a new account once a month.

              The inconvenience of pure pirating is needing to know what you want to watch, and having to download it ahead of when you want to watch it (and then if it turns out you don't like it, you've wasted your time and data downloading a whole season of it or whatever). Whereas with Netflix or similar streaming service you just find something that looks good, turn it on & binge.

              If you spend a lot of time pirating stuff anyway you wouldn't find it much of an inconvenience, but for those of us who don't, it is, as we have better things to do with our time than trawl torrent sites and wait for downloads.

      • enzioFirenze on 07/11/2018 - 12:00
        +1

        that's what I meant for sure, thanks for articulating it mate :)

    • enzioFirenze on 07/11/2018 - 12:05

      added a link to a good read and explained it a bit better :) thanks for pointing out the cryptic nature of the OP haha

  • c64 on 07/11/2018 - 11:17
    +3

    bugger, i thought this was going to be about having open bank vaults you could just walk in to and walk out of with money

    no way i'm trusting my banking information with third parties

    • enzioFirenze on 07/11/2018 - 12:02

      haha interesting assertion :D

  • HighAndDry on 07/11/2018 - 12:25

    It's an interesting proposition, somewhat akin to how your medical records can be transferred between medical professionals currently and will work the same way - the information will now belong to the customer, and not to the bank itself.

    • enzioFirenze on 07/11/2018 - 12:29

      exactly, I think it's a right step to the future as long as the implementation is robust :)

      • HighAndDry on 07/11/2018 - 12:41

        Oh definitely - it will, what's the buzzword? "Democratize" the financial services market because it'll make it far easier for people to move between different financial institutions because this will (almost) completely remove the lock-in effect of the current system.

        The only real downside I can see is that because the information will be more easily accessed by end consumers, it'll also make it more easily scammed out of them. I expect there to be spates of people being phished into sending their financial information to scammers unless the system has limits and checks on who customers can send their info to.

        • enzioFirenze on 07/11/2018 - 12:49
          +1

          that's so true, I think if UK is any indication, there will be accreditation procedures that'll need to be adhered before becoming a third party that can ask for customer information

  • tsunamisurfer on 07/11/2018 - 12:29

    No I want my financial data to belong solely to the insitutions I have engaged.

    • enzioFirenze on 07/11/2018 - 12:30

      it still will only belong to the institutions you have engaged, open banking won't automatically share your data with anybody else, it will only do so if you engage with that institution and initiate that.

    • enzioFirenze on 07/11/2018 - 12:49

      yeah I've read the take up is slow as well

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