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Research report
15 March 2019

What is open banking?

We explain how it works and how it could affect you.

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Ralph C.
20 Mar 2019
Customer takes all the risk

A few points to consider:

1. you are handing your online banking credentials to another party.

2. Your (NZ) bank's terms and conditions almost certainly prohibit you passing your online banking credentials to third parties.

3. Your bank's T&C's definitely make you liable for any losses or frauds flowing from you handing log on details (user names, passwords etc) to third parties.

Think the risk is low? Google "Cryptopia Christchurch". Nice website, company registered to a residential address.

Online payments are also risky in NZ. Many Councils and other organisations use third party companies to process online visa payments. However, in order to pay your rates by credit card this way you have to tick a box accepting T&Cs - which make you liable if anything goes wrong with the payment.

David C.
17 Mar 2019
Third Party Services?

If open banking would allow third part services to advise me, that's all well and good, but how do I know that said third parties are not owned by the banks as well, with a view to steering me towards certain bank's products? The problem is transparency, where we, the consumer, can have no clear idea about who owns, and represents the interests of, whom.

Anthony L.
16 Mar 2019
Open Banking

Don't get too excited about this. Banks security systems are far from perfect and my bet is that open banking could become a crooks charter. There was a lot of publicity about open banking in the UK about a year ago since when it's all gone quiet as everyone considers the security implications.