From 30 May, New Zealand’s four major banks - ANZ, ASB, BNZ and Westpac - must offer the secure payment service - although some already have it in place.
It allows customers to give a third party (such as an online retailer) permission to connect to their banking information, meaning there is no need to enter credit or debit card details to make a purchase.
Open banking can be used both on retailers’ websites and on their mobile app, if they have one
Is this going to give retailers access to account histories etc? Insurance companies?
From my understanding, the answer is yes, on an opt in basis. Any organisation (that signs up and follows the rules) can request access and you need to approve a prompt.
However, the 30 May date is just for payments. Account sharing comes later and depends on the bank.
However, if you’re worried about moving into a world where this is required… You’re probably right to be worried.
It’s not exactly opt in if it’s “share your data or we won’t give you insurance”.
It is going to be share your data or no insurance.
Damn, these are dark times, just around the corner.
This will crush people. We think Americans have it rough. Just wait.
Anyone seen any retailers supporting it? Is it different to the “online EFTPOS” stuff?
It also seems Kiwibank customers will have to wait a couple of years.
Surely you’d want to wait yes? Do you really want corporations scanning your spending habits?
There are two things here. One is online payments, the other is sharing your data. For online payments, this seems to be a better option that Polipay. And most likely more private than using a credit card.
The data sharing is a whole nother kettle of fish though.
Yes, it’s a slippery slope though. “Oh this is so easy” so you use it. That’s step 1. Then “Give us your data for your rewards”. Oh, I love rewards! $10 off my groceries a week. Then “Your insurance just doubled”.
What is to stop you from creating an account that only has a connection to your insurance company…or is this supposed to be we get access to literally all of your accounts and spending habits?
They would probably require you provide the account that your salary goes into, then ask for explanations for any money leaving that they can’t categorise.
This is probably similar to asking people to provide 3 months of bank statements, which happens today. I’m not usually a slippery slope kind of guy but making it easy to automatically scan your transactions may well change the industry for the worse. Would be interesting to know how this affected things in Europe, I think it’s been around there a long time.
Depends if the insurance company will allow that. I would say they won’t. It’s game over at that point.
I’d agree about waiting personally. Not to defend it of course, but isn’t this already happening? Probably not at the banking side other than for their internal benefit (I presume as they’re fairly regulated) , but at the retail , POS , even accounting system sides? Theres also all other data collection and harvesting sources - internet use basically, location data etc - but thats all known. This is likely to be a more consolidated competitor in that space I guess. All speculation. I’m more curious so fishing for knowledge
I am in some of the industries you mentioned, and no, it’s not common. Not yet anyway, but some unscrupolous actors would love to get that ride going. People need to push back, or we will be so far under the thumb, we won’t be able to breathe.
