“For me, I think the government really needs to put more technology education resources out there for the community.
“Some of the elderly who come to TaiTech are in their late ‘80s or ‘90s, and when they learn to use an app they easily forget how to use it. It takes practice to become fluent.
“I would like to see targeted investment for our region's diverse population to educate them about what open data sharing means for them.”
In the regulatory impact statement for CDR, Minister of Commerce and Consumer Affairs David Clark said the framework would be similar to the one in Australia.
The roll out for CDR would be on a sector-by-sector basis. Industries would be designated by the Minister.
The designation would specify the type of data and functionality covered in the framework, which would provide rules and standards governing the transfer of that data.
Officials were carrying out work to identify which sectors should be considered for designation first.
The legislation is set to be introduced to Parliament this year.
Banking, Energy Retailers and telecommunication providers are expected to be first in line.
EIT Tairāwhiti and Hawke's Bay principal lecturer and researcher for computing, Dr Emre Erturk, said CDR would benefit both consumers and businesses. But the framework would need proper safeguards in place to manage cybers ecurity and privacy- related risks.
“CDR will facilitate a legal framework on how the data is stored and protected which at the moment doesn't really exist.
“At the moment our data is protected through a mutual trust between a service provider and an individual (for example, the consumer and the bank). There are no standards overarching what data is collected, where it is stored and who it is shared to. There are of course confidentiality clauses.
“Through CDR the government is trying to regulate data sharing through an accreditation scheme for third parties with safeguards in place to protect consumer rights. ”
At present there were some uncertainties about how long the formation of this kind of legislative framework would take, Dr Erturk said.
“In my opinion, it should be optional for consumers to share their data, it shouldn't be imposed on them. Consent should be explicitly taken or withdrawn, not included in terms and conditions of services.
“There should be transparency about where, what, to whom the data is being shared and for what amount of time.
“We know some consumers feel sensitive about data such as banking transactions to be shared openly. There are questions about if you use another application to access your data, who can see your transaction history.
“Sometimes consumers can be rushed into consent.
“Let's say you are trying to get a mortgage or a loan, in that situation you will want to share your data with other banks to look at your options. So you may be in a situation where you allow this to happen, but later when you don't need it anymore, other people could still be analysing your spending data which could be a cause for concern. The government should look into these issues during the process of forming the legislation.”
Cyber security was another concern some might have about openly sharing their data, Dr Erturk said.
“It will benefit businesses because it creates competition, and gives them wider reach to customers. For customers, they will be able to decide which service, for example, an energy retailer is best suited to their electricity needs and budget. They won't need to fill out data manually to compare plans. It will be done for them in a secure manner.
“Then again, there are concerns about a lot of pressure on those who are less computer literate and not tech savvy. They won't know whether to trust the system and how to verify data they wish to share.
“There should also be an option to give and withdraw consent at consumer's own will.”
In other countries the uptake of open data sharing wasn't high, Dr Erturk said.
“We knew CDR would be coming to New Zealand… but there is a lot to consult upon before the legislation comes into force.”
Workbridge chief executive Jonathan Mosen works for the disabled community.
Mr Mosen said he was optimistic about the legislation, especially for disabled communities in terms of sharing data within the health sector.
“In a medical context for us (disabled communities), highly personalised information is sometimes exchanged.
“I think anything which makes it clear how information about us is stored and shared, which gives us power over its transfer, is a really positive thing.
“One of the details we need to think about is how does somebody verify what data is being shared, and how it's being transferred, so if it's through any kind of online portal, it needs to be accessible in terms of verifying the data transfer. Overall I think it's a positive step and I would like to know more about it.”
ANZ Bank's digital lead data and open banking Jody Bullen said open banking had the potential to dramatically change New Zealand's financial services landscape, bringing numerous benefits to customers and users of data.
“Consumers could use their data to gain greater insight into how they manage money and improve their overall financial wellbeing.
“Today, financial service organisations hold their customers' data. Sharing it with third parties is difficult and complex.
“For example, bank customers can only share their transactional data by exporting or printing it then sharing their statements with one third party at a time.
“In contrast, open banking will allow customers to share their data seamlessly with accredited third parties of their choice. This will give them more control and transparent oversight of their financial information.”
With the use of data-driven insights, banks and other parties would be able to develop lower cost services and reduce fees, Ms Bullen said.
“Open data sharing in banks will support financial wellbeing and potentially improve inclusivity, financial and digital literacy.”
Creating an open data ecosystem was time-consuming, complex and costly and a perfect model for it didn't exist, she said.
“There is also a growing acknowledgement and appreciation of the different perspectives and capabilities banks and fintech companies bring to the table.
“We're seeing a convergence between banks, who have built a trusted, safe and secure ecosystem through strong risk management practices, and the fintech's ability to be agile, move at speed and present a new way of thinking.
“When we think back to the introduction of the electronic direct debit or the EFTPOS network, from technical, operational and commercial aspects, these examples highlight the significant collective effort required to develop and deliver these types of services.”
