Mortgage business logo

NextGen applauds move to ban screen scraping

Government’s move to ban screen scraping has been welcomed by the lender technology solution provider, as it flags the technology’s security and privacy weaknesses.

NextGen has welcomed the government’s move to assess screen scraping and whether it should be banned where the Consumer Data Right (CDR) is a viable alternative.

Reacting to the release of Treasury’s new consultation on screen scraping and its policy and regulatory implications, technology solutions provider NextGen has said it believes that screen scraping “poses significant cyber security risks and may compromise consumer protection”.

For example, it flagged that screen scraping involves “consumers sharing sensitive login details with third parties”, thereby removing their ability for recourse if things go awry.

According to NextGen – which owns open banking business Frollo – open banking is a safer and more secure ecosystem for borrowers and can provide greater efficiencies in lending.

For example, NextGen flagged that open banking provides the following:

  • 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.

It therefore welcomed the recent release of the Albanese government’s discussion paper proposing a potential ban on screen scraping in financial services.

md discover

Tony Carn, chief customer officer of NextGen, stated: “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, cutting-edge solutions that eliminate the need for screen scraping practices, which involve consumers sharing sensitive login details with third parties.”

Mr Carn suggested that NextGen’s CDR-enabled open banking solution for mortgage brokers and lenders offered a more secure, efficient, and transparent alternative to screen scraping as they adhere to strict regulatory guidelines and provide “a higher level of data security and privacy for Australian consumers”.

Our solutions empower mortgage brokers as trusted advisers by offering enriched data and powerful insights into a customer’s financial position,” he said.

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.”

Mr Carn noted that NextGen was actively collaborating with mortgage aggregators and major lenders in bringing CDR-enabled open banking solutions to the market, “building a safer and more efficient financial ecosystem for all Australians”.

[Related: Axing screen scraping under review: Treasury]

You need to be a member to post comments. Become a member for free today!
Share this article

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

brokerpulse graph

What are the main barriers to securing a mortgage at the moment?