Security - Money Under the Mattress: The Only Solution? | MoneyStrands

Transparency means efficiency and more opportunity, but does it mean our data is less secure? How much do we know about online safety and data protection?

More of us that would care to admit it live in blissful ignorance about what happens to our personal information once we share it online; we post a photo and turn a blind eye to the small print.

And it’s not just photos – how many times in any given week do you use Facebook Connect to sign up for an app or website, rather than take the time to register? How many shopping sites have access to your bank details?

Think about the number of places you use the same password to log into, or the number of pin codes that wouldn’t take a genius to crack. It’s perfectly feasible that our precious data could be in the hands of those we’d rather it wasn’t. Scary thought.

So, when it comes to online banking, our earnings and savings, when the risks are higher still, can we rest assured our banks have our back?

Banking and money is one area of our lives where taking due care is vital. Slip-ups can mean desperate consequences.


Are we safe?


The banking sector is more than aware of the security issues that come with digital banking and the latest innovations to make data exchange simpler.

The likes of Amazon, Google and Facebook and other non-banks are disrupting the banking sector by offering payment services, and with this innovation and shift in paradigm comes a new legislation to control it. This is Open Banking, and banks are concerned about the implications.

It’s not like they have much of a say in the matter; they were quite happy being in charge of all customer data until now, but the rug is being pulled out from under them, as now the person to decide what happens with our data will be us.

Whether or not you think you can be trusted with the responsibility, this is good news for you, as you are now able to choose with whom to share your personal information and access third-party services at the same time. You pick who gives you the best service and send the rest packing.

It is also a good opportunity for them to grow their traditional business, know us (the customer) better and provide more on-target services, but their concerns about security might make the plus side hard to see for the foreseeable future. Time will tell.


Bank or Bust


Food for thought: If given the choice would you pick a traditional bank or a non-bank?

Tough one, but the majority of users are staying put. Why? Well because banks have always had to comply with strict regulations when it comes to our money management and that isn’t likely to change anytime soon, and because Internet giants have much fewer limitations as to what they do with our data.

A case of ‘better the devil you know’? You bet. The banks have done it right by us so far, so we can definitely afford to give them the benefit of the doubt.


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