iTnews

Australia's banks may face rules on ethical use of tech, data

By Kate Weber on Jul 6, 2021 1:12PM
Australia's banks may face rules on ethical use of tech, data

As banking code of practice is reviewed.

Australia's banks could be subjected to enforceable commitments in the ethical use of data and technology under a review of the banking code that started today.

The banking code of practice, which is maintained by the Australian Banking Association (ABA), is independently reviewed every three years.

It comprises "a set of enforceable standards that customers, small businesses, and their guarantors can expect from Australian banks", and "provides safeguards and protections not set out in the law."

A "consultation note" attached to this year's review of the code questions, among other things, whether the consumer data right (CDR) laws provide appropriate data protection mechanisms, or whether more stringent rules may be required.

"While banks can only share data when the consumer tells them to do so, consumer representative bodies have suggested there are issues regarding the safe and secure handling of data, particularly in the context of financial abuse, elder abuse, and domestic violence," the consultation note states [pdf].

“More generally, banks are increasingly using digital technologies which offer many benefits for consumers but also raise a number of concerns if improperly used.

“Should the banks commit to the ethical implementation and use of technological developments?”

The review also raises questions over the effectiveness of the code relating to support for consumers during the Covid-19 pandemic.

While the banks offered various financial support, the consultation note questions whether or not vulnerable consumers, such as the elderly, could access some of the support available, particularly when it was offered through digital-only channels.

Due to health restrictions in the pandemic, customers couldn’t engage with their bank on a face-to-face basis, requiring banks to look out for those without access to digital methods of banking or for receiving communication.

A special note was added to the code in July last year stating that the effects of the pandemic may see banks unable to comply with timing restrictions regarding financial communication.

However, it is only in effect until September this year.

The code review is to be undertaken by Treasury veteran Mike Callaghan in consultation with consumer representatives, small business organisations and other stakeholders.

Submissions are due by early August with the final report to be released at the end of November.

“The code is a rulebook for banks that sets out clear rights for customers," ABA chief executive Anna Bligh said in a statement.

"It is enforceable ... and used as the standard by which the Australian Financial Complaints Authority considers customer complaints against banks, so getting it right really matters."

Got a news tip for our journalists? Share it with us anonymously here.
Copyright © iTnews.com.au . All rights reserved.
Tags:
abaasicaustralian banking associationbanking codecovid19digitalfinancefinanceitstrategy

Partner Content

5 essential digital transformation ideas
Promoted Content 5 essential digital transformation ideas
Top 5 Benefits of Managed IT Services
Promoted Content Top 5 Benefits of Managed IT Services
Security "mindset shift" needed to protect organisations
Promoted Content Security "mindset shift" needed to protect organisations
Don't miss Australia’s premiere IoT Conference on 9th June
Promoted Content Don't miss Australia’s premiere IoT Conference on 9th June

Sponsored Whitepapers

Planning before the breach: You can’t protect what you can’t see
Planning before the breach: You can’t protect what you can’t see
Beyond FTP: Securing and Managing File Transfers
Beyond FTP: Securing and Managing File Transfers
NextGen Security Operations: A Roadmap for the Future
NextGen Security Operations: A Roadmap for the Future
Video: Watch Juniper talk about its Aston Martin partnership
Video: Watch Juniper talk about its Aston Martin partnership
Don’t pay the ransom: A three-step guide to ransomware protection
Don’t pay the ransom: A three-step guide to ransomware protection

Events

  • 11th Annual Fraud Prevention Summit 2022
  • iTnews Benchmark Awards 2022 - Finalist Showcase
  • IoT Impact Conference
  • Cyber Security for Government Summit
By Kate Weber
Jul 6 2021
1:12PM
0 Comments

Related Articles

  • NAB bulks up its digital, data and analytics talent
  • Westpac exec defends CORE program as "ongoing process of monitoring"
  • AMP builds new cyber defence centre
  • Westpac recommits to $8 billion in cost cuts
Share on Twitter Share on Facebook Share on LinkedIn Share on Whatsapp Email A Friend

Most Read Articles

NBN Co's 250Mbps and gigabit growth is finally clear

NBN Co's 250Mbps and gigabit growth is finally clear

NBN Co sizes up six-figure customer exodus a year to fixed wireless

NBN Co sizes up six-figure customer exodus a year to fixed wireless

NBN Co to cut 160 applications under $200m IT simplification

NBN Co to cut 160 applications under $200m IT simplification

Kmart Australia re-platforms ecommerce site to AWS

Kmart Australia re-platforms ecommerce site to AWS

Digital Nation

Lendlease launches its own metaverse in Milan
Lendlease launches its own metaverse in Milan
Why do DeFi and DAOs matter to business?
Why do DeFi and DAOs matter to business?
CTO Juergen Mueller offers a glimpse into SAP's metaverse play
CTO Juergen Mueller offers a glimpse into SAP's metaverse play
COVER STORY: Data and IoT set digital agriculture on a sustainable future
COVER STORY: Data and IoT set digital agriculture on a sustainable future
COVER STORY: A Year in the Metaverse
COVER STORY: A Year in the Metaverse
All rights reserved. This material may not be published, broadcast, rewritten or redistributed in any form without prior authorisation.
Your use of this website constitutes acceptance of nextmedia's Privacy Policy and Terms & Conditions.