Technology & use of data

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Keeping customer data safe with open banking technology

As scammers and hackers use ever more sophisticated ways to access online data consumers are demanding both increased security and transparency to ensure their assets are safe.

The repercussions of data breaches extend beyond financial losses resulting from money being siphoned by hackers. When sensitive, confidential or personal information is stolen during a data breach, it introduces a multitude of significant issues. These can involve the compromise of private details, potential identity theft, the violation of confidentiality, and a host of related concerns.

Customers are becoming increasingly reluctant to share personal details such as log on details with anyone in the financial space for fear of being targeted. In order to protect data while improving the customer experience and optimising resources, new technologies were required. Enter open banking, a secure approach born out of new regulations designed to promote competition, innovation and consumer empowerment in the financial sector.

Open banking allows third-party providers access to customer financial data through secure application programming interfaces (APIs) and provides customers with greater control over their financial data. When customers opt to share their data in a secure way it allows third-party providers to offer personalised financial services, such as account aggregation, financial management tools or enhanced payment experiences.

In Australia, open banking is regulated by Consumer Data Right (CDR). The opt-in service ensures data privacy and security standards are upheld and aims to create a more open financial ecosystem that benefits consumers.

Peter Smyth, Founder and Executive Director at Hound, believes securely sharing comprehensive, up-to-date customer data via open banking is the way of the future for the financial industry. He says open banking benefits customers by offering market-leading technology and industry-best practices in customer data security.

“It is a means by which you, as a bank account holder, can decide to securely share some or all of the details from specific bank accounts with a person or entity,” he says.

“That in itself sounds relatively simple but to do it in a way that you do not have to share your log-in details or your password or anything like that – that’s the key thing.”

Open banking also benefits brokers by providing enhanced access to financial information and a streamlined process. It means brokers can always see their customers’ current loan information and be alerted when it changes, without having to reach out to lenders.

Effective use of technology such as open banking is the future of the industry, and Hound is leading the way with its focus on security and transparency. Hound’s app Pup puts open banking on mobile phones, allowing easy, on-the-go access with just one log-in.

The Pup open banking portal allows brokers to see clients’ loan information in real time, with live loan account data from almost every lender – all with a single sign on. Customers receive an email that initiates a 30 second consent process and once consent is granted the loan info begins flowing via the platform.

This technology saves time for brokers and their teams by optimising the process and allowing efficient resource allocation. Open banking enhances back book management by providing brokers with real-time access to customer financial data and enabling proactive analysis and optimisation of client portfolios. With open banking, brokers can securely retrieve detailed information about clients’ loan accounts, transaction history and financial profiles. This timely and accurate data empowers brokers to gain deeper insights into their clients’ financial situations, identify cross-selling opportunities, and tailor their services accordingly.

By leveraging open banking APIs and automated data retrieval, brokers can streamline the back book management process, eliminating manual paperwork and reducing administrative burdens. This allows brokers to focus more on analysing data, identifying trends and making data-driven decisions to maximise client value.

Open banking and other secure technologies provide customers and brokers alike with transparency, time savings, and peace of mind. Hound’s market-leading customer data security and effective use of technology is the key to success for Australian brokers.

Embracing technology is crucial in order for brokers to thrive and to help deliver a seamless experience to clients. Speak to us about how Hound can help your team – and your clients – maintain security and transparency simply and effectively to keep your business ahead of the pack.

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