HomeView 2016 Media ReleasesPC report stimulates debate on banking competition

The Productivity Commission has today identified the keys to unlocking greater competition in the retail banking market to benefit consumers.

The Productivity Commission has today identified the keys to unlocking greater competition in the retail banking market to benefit consumers.

The PC’s draft report on Data Availability and Use unveils a suite of measures to empower consumers and spark competition and innovation in banking.

“This report is very welcome because the banking market is an oligopoly dominated by four players who have market power and there is a lack of robust competition,” COBA Head of Public Affairs Luke Lawler said.

“The PC is taking a pro-consumer stance on data availability and use, pointing out that data is increasingly an asset and consumers should be able to use this asset.

“We are very interested in contributing to the debate on the PC’s draft findings about customers’ capacity to share their bank account data through ‘APIs’, about comprehensive credit reporting and about explicit regulator mandates to promote competition.

“The PC says the benefits of allowing consumers to share data through APIs include increased competition, greater innovation, and enhanced consumer choice.

“Empowering consumers to better compare banking products and services will lead to greater competition and improved consumer outcomes.

“Customer owned banking institutions have highly competitive pricing and excellent customer service so our sector is keen to explore in more detail the costs and benefits of data sharing via APIs.

“The PC has put a stake in the ground with its finding that the ‘provision of data in an API format most closely achieves the objective of allowing consumers to derive value from their data, and most closely satisfies the criteria of improving the availability and usefulness of consumer data.’

“We can learn from the UK approach where the competition regulator has announced a timetable for implementing a data sharing Open Banking Standard for the largest banks which have a critical mass of the market.

“In designing its package of pro-competitive measures, the UK regulator has considered cost and proportionality and taken a staged approach to various measures. Some of the measures are mandatory only for the largest banks. This avoids imposing unacceptable costs on smaller banking institutions while still delivering a more competitive market.”

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For more information please contact:

Daniel McDougall, Senior Manager – Media and Communication

02 8035 8444 or 0407 637 541, This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Customer Owned Banking Association is the industry body for credit unions, building societies, mutual banks and friendly societies.  See coba3.nexusone.com.au

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