In a digitised economy, who owns your data?

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In an increasingly digital world, paperless conveyancing and digitised property solutions are become more prevalent, making the process of investing in and managing property ever more seamless along the way.

But during this digital renaissance, consumers need to ask questions about how their data is stored, used and sold – and just as importantly, who retains ownership over that data, said Marcus Price, CEO so Property Exchange Australia (PEXA). 

“When people are buying or selling a house, they expect an end-to-end solution. The people buying and selling houses are the same people who are using Uber and Airbnb, so they increasingly expect and demand convenience,” said Price.

“When that borrower comes back to do a refinance two years later, they’ll want to re-access the information they’ve already supplied without repeating it all. Of course it needs to be updated, but they want access to their data. Hosted data vaults are going to become quite significant, but who owns the data within it? Who controls it?”

The biggest innovations in the next year or two will be “around security and trust, and being able to provide a trusting environment,” he added.

“I think ultimately the next generation will demand that they own the data, and I think they should,” Price said.

“It will come back to the question of how they can manage and use their own information, which is part of open banking. At the end of the day, customers should be able to take their data wherever they want to.”

Price suggests that there are big innovations to come around VOI (verification of identity) processes and digital identities, as the property industry currently operates with a huge reliance on paperwork and personal touch.

“At the moment, it is all face-to-face and I don’t think that is sustainable long term,” Price said.

“In the next few years, this will change a lot – not just in conveyancing, but in everything. The role of digital signing is also a related topic, because we need to define what exactly constitutes a digital signature. How do you know that signature is actually related to the correct parties? The fraud side gets more sophisticated, which is why we at PEXA see cyber security as a major issue for us to focus on over the next few years.”

 

Related stories:
Paperless conveyancing up from 4% to 42%
Digital conveyancing to lower loan delays

 

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Comments
  • Greg says on 07/06/2018 09:40:55 AM

    Thank you. A very timely article in an environment where data breaches are becoming more an more widespread. What solutions and guarantees can PEXA provide that sensitive personal and bank data remain secure?

  • Ray says on 11/06/2018 11:38:36 AM

    Apart from possible data ownership issues and the risk of data breaches, there are numerous other issues which underscore the fragility of the PEXA solution. These include: PEXA has yet to complete its brief to build a national property network - it has dismissed its COAG obligations for Tasmania, NT and ACT jurisdictions. The organisation lacks legitimacy as it is controlled by the major bank interests who seemingly override the rest of the industry and stakeholders. There are still many functions missing in the system which, after 7 years of design, development and implementation, might be expected within the current version. The scale of the network is less than half of the total target participant market despite PEXA’s claim two years ago that their implementation was complete, and they could merely rely on self-sustaining growth. Clearly demand is not yet at the level forecast by PEXA. There is also technology uncertainty – PEXA’s solution was developed prior to industry adoption of Blockchain frameworks for other financial and property applications – will Blockchain make PEXA’s technology and pathways redundant? Finally, there are obvious deep divisions among many stakeholders who are not unified in making PEXA a success – competing banks, sponsors, practitioners (large vs small; lawyers vs conveyancers). An interview with the PEXA CEO about the above issues would be insightful, particularly in view of PEXA’s pending IPO vs buyout proposals, and the competitive threat announced by ASX and InfoTrack which will dramatically impact PEXA’s monopoly.

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