Grasp your expenses and income: This can be done through a digital household book. Seventeen companies (so-called account information services) are now active in the Netherlands, but after a year and a half things are not going well.
With the introduction of PSD2 (Payment Services Directive 2) in early 2019, consumers can use new online payment and account services.
There are two flavors:
- Payment initiation services: providers can perform a balance check; Do you have enough money in your account to order a product? And they can also make online payments on behalf of the account holder. A kind of iDEAL, but then through a fintech company.
- Account information services: Providers can download bank statements and import them into a digital cash book. They cannot make payments. A separate permit is required for this.
17 new providers
Seventeen companies have now received permission from De Nederlandsche Bank (DNB) to request account information. More information about PSD2 and what it means to you can be found on DNB’s website.
These providers can – provided the consumer gives permission in advance – for example, show all your accounts in different banks in one financial overview. And you can in such a digital household book see where your money goes and where you can possibly cut down. Six apps are also allowed to issue payment orders – a separate license is required for this.
A large number of household books are free, and some providers have a paid version. The paid versions often have more options than the free booklets, such as adding your own subcategories, creating budgets or reports.
Banks also offer online household books
In addition to these 17 providers, the banks ABN AMRO, ASN Bank, Knab, Rabobank and SNS also offer a digital household book to their own customers. As a house bank, they already had access to your payment information. ING stopped its own digital household book Tim in 2014 due to lack of interest.
ING has no plans for a new digital cash book in the Netherlands yet. Abroad, the bank is experimenting with the Yolt app.
According to the Consumer Association, the providers of digital household books make money from the sale of paid editions of the household books, and from advertisements and links to other websites. Most household books do not actively address customers with offers via email or text message. The Money Wise site made a step-by-step plan and listed costs and functionality per. household book.
In addition, they have also investigated whether one can consult such a household book via app, PC / laptop, offline and online. Here is an overview of the digital household books that are currently on the market:
- ABN AMRO Grip
- ASN Bank Cash Book
- Banking tools
- Cash Flow Online
- Davilex Cash Personal
- The household booklet
- household box
- just money
- Money Pro
- Naanab Finans
- Simple household booklet
- SNS Online Household Booklet
- Where is my money (Rabobank)
- win bank
- housing budget
It is important that these companies are careful about your privacy because financial personal information is sensitive information. For example, by studying a person’s payments, you can see if anyone is a member of a union or church, and where they make their purchases. The consumer must give express permission to the new providers before they can see your bank balance, payment information and bank statements. DNB and the Dutch Data Inspectorate (AP) conduct inspections.
Do not storm
The advantage of such a digital household book is that you as a user no longer have to enter all transactions manually. The software automatically loads all your banking transactions and you can see what you are spending your money on per. category. Still, it’s not stormy yet. The Dutch are not generous in giving permission to fintech companies, shows an English-language survey from DNB among more than 2,600 consumers.
This shows that:
- Most consumers do not want to share their payment data. 46 percent certainly do not want to share payment data with their main bank, 60 percent do not want it with other own banks and the chances are much less for other parties.
- The average self-estimated chance of the consumer giving permission to share payment data within 12 months is highest with their own central bank (29%), followed by other banks where they already have an account (14%). At other banks where the consumer does not have an account (4%) or at non-banks, the chances are much smaller (2%).
- And even in exchange for a discount, the offer must be very good. For example, some consumers may be tempted to choose another bank or high-tech company with a lower interest rate for their mortgage or loan. The financial incentive that large tech companies have to provide to compensate for the confidence in their own bank is two to three times higher than for another bank. And the difference in a mortgage loan can quickly be a few tens a month if people want to switch to the cheaper provider. Confidence often proves to be more important than a few euros in price difference.
Research by AP
The Dutch Data Protection Authority (AP) launched an investigation into the new online account services in February 2020.
The purpose of the investigation is not to hand out fines, but the privacy guard is excited about whether the new providers comply with all privacy rules. If violations are found, the AP can proceed to enforcement. According to the spokeswoman, it will take several months before the investigation is completed. And to date, no data breaches have been reported.
Payment data provides a clear picture of a person’s privacy
Katja Mur, board member of AP, says: ‘If anyone can look at your digital statements, they can form a sharp picture of your privacy. He or she sees that you get a cup of coffee at the station in the morning, pay for your lunch in the company canteen in the afternoon, and do your shopping in the supermarket around the corner in the evening. ‘
‘You can also look at your payments, which denomination or political party you are a member of. And maybe also that you go to the casino, buy medicine at a pharmacy or visit a liquor store regularly. We think it is important that companies handle this sensitive data with care ‘, says Mur.
Filed in systems without permission
The difficult thing is that you may give permission to share your data with such a digital household book, but because all your transactions are processed, there may also be payments from friends or family who do not want to share their data. Mur says about this by-catch: ‘It also concerns personal data of the person from whom you buy your used car, for example. And about the friend who transfers his share of the bill to you after a drink in town. So even if you have not given your permission to share your payment information, in some cases it will still end up in the systems of companies other than the bank. ‘
Data is worth gold
Additionally, you may be able to give permission to a small likeable startup, but you do not know if this club will ever be swallowed up by big commercial technology giants like Amazon, Alibaba, Facebook or Google, who are also taking steps to financial market. These four major technologies already have European licenses as payment and electronic banks and (like the other parties that have been granted a PSD2 license in another EU country) are allowed to offer payment services throughout the EU through their European financial passports. And due to an acquisition, your payment information is there all of a sudden.
Businesses can create interesting profiles if they can link private relationships to your income and spending patterns via social media. This data is worth gold for marketing departments. And once you have shared your data, try to get it back or have it deleted, despite active deletion and the right to be forgotten.