ING Under Fire From Fintech Watchdogs For Open Banking ‘Breach’

Two fintech watchdogs tell regulators to ING Bank (Australia) They argued over a planned software migration that would void existing data-sharing arrangements.

Australian National Fintech Association Fintech Australia and F Data ANZ, ING, a not-for-profit global association of financial services companies operating in open banking and open finance, has expressed serious concerns about ING’s recent decision to move to a new Consumer Data Rights (CDR) solution. increase.

FDATA ANZ and FinTech Australia Australian Competition and Consumer Commission (ACC) act immediately. We also issued the following joint statement on behalf of accredited data recipients across the CDR ecosystem:

ING understands that on February 8, 2023, all active data sharing arrangements for existing solutions will be revoked to a new consent solution. This means:

  • All consents currently active in ING must be redone
  • Thousands of consumers affected
  • Authorized Data Recipients bear the cost of reintegration and damage to their business.

Not all Authorized Providers (ADRs) have been notified. The short timeline that some have noticed is an additional concern. This exacerbates the problem as it means ADR has to coordinate teams to update the platform on short notice, resulting in costs and reputational damage.

This action is disrupting the lives of many Australian consumers who are using CDRs to improve how they manage their finances and cannot set a precedent.

dangerous precedent

“This move from ING sets a dangerous precedent for the development of consumer data rights and jeopardizes the benefits it brings to consumers,” it said. Rehan Dharmeida, General Manager, Fintech Australia. “A consistently high customer satisfaction bank, he is baffled that ING has not prioritized consumer data rights. We have spent years establishing

Matthew MitkaFDATA ANZ, Regional Director of , said:

“Open banking is still well tracked with 95% of ADIs sharing data (114 brands) and 88 data recipients in the ecosystem. On the one hand, we need to see a firm response from regulators to ensure this is not a precedent.”

ACC Action

CDR is an economy-scale data sharing program that enables Australians to leverage the data they hold in their businesses to their advantage. Not only banks, but also the energy sector has started.

FDATA ANZ and FinTech Australia want the ACCC to take regulatory action “commensurate with the severity of the violation”. It also seeks recognition of the level of harm, detriment, or potential harm this may pose to consumers, and the damage to confidence in the CDR program.

The ACCC may issue a Notice of Infringement if it has reasonable grounds to believe that a business has violated the CDR Rules.

In December Fine to ACCC ING has paid ING for alleged violations of the CDR rules related to the 2021 and 2022 data sharing deadlines. ING also paid fines totaling $53,280 after the ACCC issued his four infringement notices.

ING is explained that upgrade “We need to build a safe and secure open banking experience for our customers.” It also said it is working on a migration plan with authorized data recipients.

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