The Morrison Government’s world-leading Consumer Data Right reaches a significant milestone today with even more Australians now able to access its benefits across the banking sector.
This milestone comes one year after open banking was first launched in Australia, with the four major banks sharing access to consumer data for a range of personal accounts. Today, 16 Data Holders and 11 additional brands will be live and sharing data as part of the Consumer Data Right, with more coming on line to take the total to represent approximately 85% of Australian household deposits.
The Consumer Data Right empowers consumers to make better-informed choices by providing access to the data that businesses hold about them, helping save time and money.
Today, further changes to the CDR Rules have been released for consultation to accelerate the benefits for consumers. These changes will enable more Australians to leverage their data in common banking scenarios, such as data sharing from joint accounts, sharing data with trusted professional advisers (including accountants and tax agents), and allowing consumers to disclose limited data insights for specific purposes, such as to verify their account balance.
Cost barriers to full participation in open banking are also being reduced with the introduction of a new sponsored tier of accreditation, and a CDR representative model. These amendments will expand the ways in which service providers will be able to use the CDR to offer benefits to consumers. All of the safeguards that are core to the CDR remain in place and are among the most stringent in the world.
Senator the Hon Jane Hume, Minister for Superannuation, Financial Services and the Digital Economy, welcomed new entrants to the CDR noting, “the CDR is a transformative approach to data that places the consumer at the centre of the system. The system is built from the ground up with incredible security and with the user in control of their data. Through the CDR, Australians can leverage their data to effortlessly access better, more specific products, potentially saving thousands.”
Today’s additional entrants join long-standing active data holders CBA, Westpac, ANZ, NAB and Regional Australia Bank, as well as recently activated AMP, Bendigo and Adelaide Bank, and Tyro. The Australian Competition and Consumer Commission is working to ensure that any remaining non-major ADIs meet their data-sharing requirements.
“Open banking is just the beginning. The CDR is an economy-wide reform - as it grows it will become more powerful for Australian consumers, with energy consumers set to benefit next,” said Minister Hume.
The draft changes can be accessed on the Treasury website. Submissions are invited by 30 July 2021 and can be sent to data@treasury.gov.au.