91% of banks customers unhappy with overseas detail setup

Monday October 26, 2009

Banks customers have expressed major dissatisfaction when asked about the current situation involving Australian banks sending their bank detail overseas to processing centres. The dissatisfaction has lead all the way to the top with the Federal Government now being pressured by to put a stop to such practices.

The national poll has found that 83 per cent of Australians want banks to have to ask written permission to send their customer details offshore, and not just happen without the banks customers' knowledge. While a massive 91 per cent say that the knowledge of whether a bank sends their customer details overseas would definitely influence who they chose to bank with.

Information sent to these offshore processing centres include any customer details, their mortgages history and any credit cards history. Banks are assuring customers that their privacy is key to the whole operation, with consumer privacy acts observed.

Apparently, two of the big four Australian banks along with a number of other financial banking institutions are already using this practice without their customers direct consent with more predicted as the financial jobs market recovers from the Global Financial Crisis. To date, over 5,500 finance jobs have already been moved overseas to cheaper labour.

Independent Senator Nick Xenophon stated to reporters in Canberra that he supports the Federal Government getting involved and introducing updated consumer protection legislation which are presently being discussed in parliament.

Senator Xenophon stated that "Australians have a right to control who has access to their personal information,"

"People have a right to know whether their personal details, their banking details, their passport details, their pin numbers are going overseas,"

"Banks shouldn't be allowed to try and save a few bucks by jeopardising the privacy of millions of Australians."

The survey was commissioned by Senator Xenophon and the Finance Sector Union.

According to Leon Carter, Finance Sector Union national secretary, it is no surprise then level of involvement that offshore processing centres have, especially with all of the big four banks hinting at the potential use of such facilities. Although, Mr Carter emphasised, it should be noted that it is ANZ and National Australia Bank that have the worst track record when it comes to outsourcing with Westpac stating that it will not send data overseas while the GFC continues and the Commonwealth Bank currently abiding by a three-year moratorium about sending jobs offshore.

"When Australian jobs are lost and the work sent offshore, your personal information also goes offshore," Leon Carter said.

"Off-shoring threatens jobs, financial security and does nothing to improve customer service."

"Two of the most aggressive offshorers amongst our banks are set to announce their enormous profits this week. Surely they should be investing in keeping jobs here."

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