In the near future, applying for a mortgage may simply require your name, email and property address, and agree to “share” your personal banking data. For consumers, this is good news, but for large banks, it is a potential profit problem. This is not an air tower. James Cameron, a partner at venture capital firm Airtree, said the new data-sharing mechanism will start this year and customers can apply for a mortgage with just a few clicks.
The system, called open banking, will allow a bank’s customers to securely share its banking data with its competitors, such as its past income, expenses and repayments. Customers can share with just a few clicks of the mouse, or more likely with just a tap of their smartphone screen. The new system was originally scheduled to start in February, but due to technical problems and the need for safety testing, the week before Christmas was postponed to July. Banks are the “mice” of this system called “consumer data rights,” which will eventually be rolled out to other industries, such as telecommunications and utilities. Commonwealth Bank (CBA) CEO Matt Comyn acknowledged at a November customer forum that new competitors entered the market. “There will be a lot of transparency measures and competition. For all financial institutions, it is important that we are truly competitive and want to provide an excellent experience for our customers,” he said.’
https://www.theage.com.au/business/banking-and-finance/open-banking-and-rise-of-fintechs-to-disrupt-big-banks-rivers-of-gold-20191219-p53lno. html
