ANZ, NAB, Westpac home loans assessed overseas

Three of the nation’s big four banks are being urged to “come clean” about sharing customers’ personal and financial details overseas without their knowledge.

Exclusive: Home loan applications with the big banks are being assessed offshore in countries including India and China without customers’ knowledge, startling new findings have revealed.

NAB and Westpac use a third-party to assist while ANZ uses their own staff located overseas.

Banking sources have revealed in some instances this is done to reduce costs because the banks can pay overseas staff less than paying Australian-based employees.

It was also confirmed in most instances they do not alert customers that their information including personal details and financial data is being shared overseas when it does occur.

University of Melbourne cyber security expert Dr Suelette Dreyfus said banks should be disclosing to customers when their documents are being accessed by people overseas.

“The banks need to come clean and tell customers in a really forthright and honest way who is accessing their sensitive financial information,” she said.

How much should you pay on your home loan

Golden rules for getting a great rate

Why rates will keep staying low

The NAB, ANZ and Westpac all use offshore third parties to help with the processing of mortgage applications. Picture: Stuart McEvoy/The Australian

“Data sovereignty is an emerging trend and also knowing where is it stored … we know there is a public mood on better transparency on this stuff.

“Post the banking inquiry consumers don’t just want to be told ‘it’ll right’ by the banks.”

However, banks have confirmed one of the reasons they process some applications abroad is to help speed up application processing times.

Dr Dreyfus said it was acceptable for banks to outsource their data checking overseas, “provided there is indeed good security that can be audited”.

The revelations come in the wake of the financial services royal commission where Commissioner Kenneth Hayne found some of the nation’s largest financial institutions were dudding customers, including charging fees for no service.

India is one of the countries where home loan assessments are being outsourced to. Picture: istock

It is understood the offshore processing of documents is done mainly by a US-based company, Concentrix, which has locations worldwide.

But banking sources have defended the use of overseas home loan application processing and claim customers’ documents are not sent overseas, instead they are accessed by personnel using a bank’s secure online portal.

Offshore staff accessing these documents can only access the information in a secure location and cannot have their mobile phone with them or make photocopies of any documents.

Westpac’s chief operating officer of strategy and enterprise services Gary Thursby said they use an overseas partner to help “enhance mortgage processing”.

But he said it was safe to do so.

“Our customers can be assured that we take safety and security extremely seriously and that we have robust processes and mechanisms in place to help protect their information,” Mr Thursby said.

MORE NEWS

Islamic school linked to terrorist

New plot to bring down Boris Johnson

Mini turns 60: How the famous car has changed

What the last recession in Australia was really like

A lot riding on Michelle Payne biopic

The outsourcing of home loan applications raises security concerns for customers’ details. Picture: istock

“In the majority of cases our customers will interact with a Westpac Group employee here in Australia when visiting a branch, contacting our call centre or engaging with a home lender.”

ANZ’s customer service operations lead Anne Young said all home loan application assessments “are held on our secure servers in Australia”.

However, some application work is completed in processing service centres in India and China.

“However, the documents are not sent overseas, they access them on Australian servers via our secure systems,” Ms Young said.

Meanwhile, NAB engages an offshore third-party provider to support services including data entry, verification and administration.

[e-mail]