“Open banking”, the idea that customers can control their financial data and share it with potentially more competitive providers, had a moment this week.
The fintech ecosystem — which sees it as a game changer and is its biggest supporter — held a packed-out summit on the idea. While the incumbent banks, which so far have paid for most of Australia's four-year-old open banking regime, orchestrated a hit job on the scheme, claiming no one was using it.
For the banks, it was a well-practised strategy of deepening their moat, forgetting for a moment the money they have spent is actually a compliance obligation.
Putting aside the many clichés on the digital economy — data is the new oil, my token is my identity — it is clear this new economy will rely on the quality of data and the security of data sharing.
