The Federal Government’s potential screen scraping ban reiterates its commitment to consumer protection

Assistant Treasurer Stephen Jones
Assistant Treasurer Stephen Jones

NextGen, Australia’s premier technology solution provider to the lending industry, welcomes the recent release of the Albanese Government’s groundbreaking discussion paper proposing a potential ban on screen scraping in financial services. This new critical development aligns with NextGen’s unwavering commitment to providing secure, transparent, and innovative solutions within the ever-evolving landscape of consumer data protection and open banking.

This prioritises data security and consumer protection

The move to consider the prohibition of screen scraping comes in the wake of the review of the Consumer Data Right (CDR), which recommended banning this practice wherever CDR is a viable alternative. At the Intersekt23 Festival last week, Assistant Treasurer Stephen Jones highlighted the risks associated with screen scraping and the need for better alternatives.

We applaud the Government’s efforts to prioritise data security and consumer protection in the financial sector. NextGen has long been committed to providing secure solutions that eliminate the need for screen scraping practices, which involve consumers sharing sensitive login details with third parties. NextGen’s CDR-enabled open banking solution for mortgage brokers and lenders offers a more efficient and transparent alternative to screen scraping.

As an ACCC-accredited data recipient (ADR) under the CDR, NextGen ensures that its open banking solutions adhere to strict regulatory guidelines, providing a higher level of data security and privacy for Aussie consumers. Our solutions empower mortgage brokers as trusted advisers by offering enriched data and insights into a customer’s financial position.

The govt's potential screen scraping ban good for consumers

This not only enhances the quality of loan applications but also delivers a superior home loan application and assessment experience for brokers, lenders, and customers. NextGen open banking was first launched with mortgage aggregator group Finsure in November 2022 and is now available to Aussie brokers under a number of broking groups. NextGen is also working with a number of major lenders to bring CDR-enabled open banking solutions to market.

Open banking a more robust technology

Screen scraping, a tech that collects displayed data, poses significant cybersecurity risks and may compromise consumer protection. In contrast, open banking offers numerous perks:

  • Consent control: Clients must provide explicit consent before data sharing occurs, enhancing trust and security.
  • No need for login credentials: Open banking eliminates the need for customers to share online banking login credentials, reducing the risk of unauthorised access.
  • Regulatory oversight and standards: Open banking adheres to strict government regulations and industry standards, ensuring the highest level of data security.
  • Secure APIs and encryption: The use of secure APIs and encryption ensures data is protected during transmission and storage.
  • Data minimisation: Open banking accesses only the necessary data, reducing exposure to sensitive information.
  • Easy consent revocation: Clients can revoke consent at any time, giving them control and peace of mind.

NextGen was actively collaborating with mortgage aggregators and major lenders across the country to help bring Consumer Data Right-enabled open banking solutions to the market, ultimately building a safer and more efficient financial ecosystem for all Australians.

Tony Carn is the Chief Customer Officer at NextGen.

Tony Carn, Chief Customer Officer of NextGen