Banking is an important part of the Australian economy, but it can also be an expensive one.
That’s why the real-time data that banks provide on the value of the money they’re lending to their customers can be a huge help when making decisions.
The real-life data that can be used to predict future behaviour is also often a valuable tool to make investment decisions, says Adam Smith, chief executive of commercial bank Khaleej Bank.
“The banks have a pretty good understanding of where people are and what they’re doing.
They can see how much money they’ve lent to different customers, what their spending patterns are, and that gives them a better sense of how they might go about investing,” Mr Smith says.
For example, the commercial bank’s latest report shows that people in western Australia spend a lot more than those in eastern Australia and South Australia.
It’s also the case that those in Sydney spend a much smaller proportion of their annual incomes on retail purchases than people in other regions of the country.
“They have to be aware of the financial consequences of what they do, because what they say on their website or what they write on their social media, they could be going into trouble,” Mr Schaffer says.
The real-world data banks provide to clients also helps them to make more informed investment decisions.
“We have a number of tools that banks have to offer, such as the asset-backed securities, that are a great tool to get the money to where you want it, to be able to get that asset back to where it needs to be, to the people who need it,” Mr Brown says.
“I think they’re important to the economy because they tell us a lot about where the money is coming from, and also about where we need to get it.”
The Australian Financial Privacy Principles (AFPP) state that commercial banks should make it clear to clients when they’re providing data to third parties.
“If we see that data is being used by a third party, that we’ve been advised to protect, that that data could be subject to the Australian Privacy Principles,” Mr Jacobs says.
What to do if you’re not satisfied with the bank’s privacy policiesMr Jacobs says there are a number options to choose from if you are not satisfied.
“There are a lot of tools out there, such a credit monitoring tool, which can give you some very specific data on the account, the transaction history, the history of the credit, so you can see if there’s been any issues in the past and if that might be a reason for a potential credit dispute,” he says.
Mr Jacobs also says the Federal Trade Commission (FTC) can help.
“It can give a bit of insight into the privacy practices of a company and how they’re managing data,” he explains.
“For example if they’ve been collecting your information for years and you’ve never seen any of that data before, or if you’ve seen no data, it’s possible that they might have been collecting it for some other reason, for example they might be collecting it to track their competitors or their competitors are using the data in a way that might affect their business,” he adds.
“But it’s also possible that you could see some of that information was being used to track you for other purposes.”
Mr Schaffer also says that it’s important to take your concerns to the bank if you have concerns about the data the bank is collecting.
“When it comes to privacy, we really don’t like banks collecting our information, we want it to be free from unnecessary, unnecessary, invasive and intrusive data collection,” he said.
“In the past, the banks have been very supportive of the privacy protections and protections that the CFPA has and that’s an important aspect of that, but also the transparency, and the right to ask for redress if something isn’t working.”
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