Open season for better deals

BANKING customers have finally been given greater powers to score themselves better deals.

From the beginning of this month “Open Banking” has started enabling consumers to be able to compare and switch banking products much more easily. It allows them to share certain data – such as credit and debit card information and deposit and transaction account information – with third parties.

But there remains limitations for now – only accounts held by single account holders not joint account

Sophie Elsworth holders can share their information.

Westpac’s acting chief executive of consumer Richard Burton said it will give customers “more confidence they are getting the best deal and help make it easier to find the best value service that meets their needs”.

The Federal Government has been working with the big four banks, the Fintech industry and the Australian Competition and Consumer Commission to build the infrastructure to allow information to be safely shared.

Treasurer Josh Frydenberg said it would make it easier for consumers to compare products and save. “Open Banking gives consumers the right to access their own data and transfer it to a trusted third party to compare products and find the best deal that suits their needs,” he said.

Under Open Banking, customers can request their bank to send their information to another bank or lender, which will make signing up to a new product easier.

From November 1, customers of the big four banks will be able to access and share their mortgage, personal loan and joint account information.

Customers at non-major banks will have to wait at least 12 months to do the same thing.

sophie.elsworth@news.com.au