ABSA’s explanation followed communication by 22seven, a new online money management service, which said that they are not certain why ABSA decided to block Yodlee considering that the service’s Absa collector worked fine during closed testing.
“The information that Yodlee gathers belongs to you, and Yodlee only collects it with your permission, which you granted to 22seven,” 22seven said in an email to users.
ABSA hit back saying that any service asking online banking users to submit sensitive personal details to a third party poses a fundamental risk to their customers’ security.
“It directly contradicts the online banking terms & conditions of all South African banks. It conflicts with the clear fraud awareness messaging supported by all banks, the South African Banking Risk Information Centre and law enforcement agencies,” ABSA explained.
ABSA added that disclosing sensitive information (like the details needed to use 22seven) renders the customer completely liable for any losses that may occur due to phishing or other online fraud.
“ABSA’s online banking terms and conditions disallow customers from divulging their sensitive information to any third party,” ABSA said.
“ABSA supports the development and use of personal financial management (PFM) solutions that assist all customers in better managing their personal finances. However, such solutions should never be presented to the market at the cost of the customers’ security,” ABSA concluded.