Banks insist customers privacy is protected

Wednesday October 28, 2009

Australian banks have defended their current actions of using overseas processing centres to handle their banks customers' accounts, saying that customer privacy is upheld at all times.

Earlier this week Independent Senator Nick Xenophon and the Finance Sector Union commissioned a survey of Australian banks customers for their opinions of this process. The survey showed that an overwhelming 91 per cent of customers were not happy with their information being sent overseas with 83 per cent wanting their bank to ask their permission in writing before any information is sent.

The backlash against the banks has seen the Australian Bankers Association (ABA) released a statement to respond to these complaints, with the ABA supporting the banks actions.

David Bell, Chief Executive of the ABA, explained in a statement from the ABA that "Confidentiality of customer information is at the core of a successful banking operation. The ABA is confident that banks take appropriate measures to protect customer information, regardless of whether or not some processing functions are undertaken offshore or whether they are all done in Australia"

"It is up to individual banks as to how they manage their systems and data, but it is important to recognise that banks not only have a legal obligation to secure personal information that they collect from their customers but that they also have a very strong commercial incentive to ensure customer information is properly protected"

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