Today, the Morrison Government is pleased to release the Report of the Inquiry into Future Directions for the Consumer Data Right, which looked at how Australia’s world-class data sharing regime could be expanded to further benefit consumers and deliver greater choice and convenience.
The Report makes recommendations on ways to expand and enhance the Consumer Data Right to boost innovation and competition, and further empower consumers. This includes expanding the Consumer Data Right framework to enable consumers to initiate actions, such as applying for and managing products by safely and securely using services provided by accredited third parties.
The Consumer Data Right in banking – known as “Open Banking” – is already helping to transform how consumers engage with financial services. It gives consumers the right to safely share their banking data with accredited providers allowing them to compare products and access new and innovative services.
Senator the Hon Jane Hume, Minister for Superannuation, Financial Services and the Digital Economy said, “The report is a valuable resource to assess the best next steps for Australia’s Consumer Data Right framework which is putting Australians in charge of their own data. We know that moving data between providers can be laborious and complex. The Consumer Data Right is simplifying this process, giving consumers the right to request their data is transferred safely and securely and enabling easier access to lower priced products. The Consumer Data Right will create a healthier competitive landscape and a fairer, more secure, consumer experience.”
The Report recommends that an expanded framework, under which consumers could choose to initiate actions using the Consumer Data Right, first be applied in the banking sector, prioritising payment initiation.
Additionally, the Report recommends including measures to increase consumers’ ability to understand and engage with consents. The Inquiry also identifies opportunities to leverage the Consumer Data Right and its infrastructure.
In mapping out the future directions for the Consumer Data Right, the Report makes 100 recommendations focused on greater consumer data empowerment, a stronger economy-wide foundation, a more vibrant and integrated data system, and advancing international digital opportunities.
Minister Hume said, “I would like to thank Scott Farrell for producing a substantial and wide-ranging report which provides a clear vision for the Consumer Data Right, and also thank those who have contributed to the Inquiry. The Government will engage with interested parties as it considers the Report’s recommendations.”
The Report is available on the Treasury website.