FinTech Australia Says ING’s Upgrade May Violate Open Banking Rules

Fintech Australia and the Financial Data and Technology Association (FDATA) want Australia’s competition watchdog to stop ING Bank from upgrading to a system similar to Open Banking.

ING is replacing its consumer data right (CDR) system, which enables users share their data with other parties.

This could put ING in violation of the CDR rules. According to FinTech Australia and the local office of the global company FDATA. In a joint statement, the two groups say that the migration. Which is set to happen on February 8, will make all previous agreements about sharing data useless.

This is what the statement says, Every consent that is already in place with ING will have to be done again. There will be an effect on thousands of customers. The cost of reintegration and any damage to their business will be paid for by Accredited Data Recipients.

The statement also states that not all accredited providers were informed of the change, forcing them to alter their platforms.

The statement says:

“This action disrupts the lives of many Australian consumers who are using the CDR to improve the way they manage their finances and it cannot become a precedent.

At the core of the matter is that this behaviour may be in breach of the CDR rules and obligations that Data Holder’s like ING have. Specifically the rules that relate to the conditions under which authorisations and consents can be revoked. This is detrimental to consumers who will have to go through the consent process again, which is not a very good experience at all.”

FDATA ANZ and FinTech Australia want the ACCC to act now. It would be commensurate to the degree of the violation and the injury, detriment, or possible harm to consumers and CDR faith and confidence.