MARK CRIMEWATCH - OPEN BANKING
Reported to Farm
At about 3pm on 4th
April, a property in Upper New Road, Cheddar was burgled. Two white and two black men were seen leaving in an orange Citroen. Police would welcome further information on 101, quoting Crime Ref
The transfer from pen and paper to Information Technology (IT)
in its many guises has seen convenience and speed outstrip public, commercial and personal understanding and security. While social media has enhanced communications, exposure has caused
misunderstanding and embarrassment and has led personal information being bought, sold and shared without the knowledge of the individual. The current furore over Facebook is an example.
expect instant, easy, and mobile responses, the UK Competition and Markets Authority developed ‘Open
Banking’ to drive competition and innovation in UK retail banking. The concept encourages banks and building societies to
share data via secure interfaces and an app
that downloads information for consumers to search for cheaper financial alternatives, such services as mortgages, loans and investments. Cheap rarely equates to quality. The concept will probably
see banks move from one-stop shop financial services to open platforms providing data and tailoring services, information and advice to suit
In spite of the
Data Protection Act and while ‘open banking’ allows consumers to compare costs and take advantage of cost-saving measure, there are risks Conceivably, the traditional concept of the local bank
being used to lodge accounts is at risk as consumer information is exposed to competitive financial providers of loans, mortgages
or investments. The personal relationship between consumer and bank could disappear. Since ‘open banking’ relies on consumers
authorising financial arrangements to be shared with third party providers, breaches of data confidentiality and fraud are likely. One
estimate suggests that a fraud in UK is committed every 15 seconds and that stolen personal information is the main driver. Typically, data
is ‘shared’ without permission or because the ‘owner/user’ has authorised it to be shared, but not necessarily understanding the implications. Most ‘nuisance’ phone calls and speculative emails are
generated after consumers tick the ‘agree to’ share data boxes on apps, online sites and contract agreements. Think carefully before ticking the ‘agree to’ box on negotiated purchases. Another risk
is financial ‘fronts’ buying and selling customer information in competition to legitimate financial institutions. Further, the incentive for financial institutions to persuade customers to change in
‘open banking’ will inevitably see them applying transfer fees.
concept of ‘open banking’ sets out to encourage competition and will probably develop into mainstay banking, the battlecry must be, as always, ‘Buyers! Be aware!’ Protect your personal
information otherwise it will be bought and sold.
Human is thanked for providing his financial expertise to this article.