Open Banking Officially Launched in Australia
(01 July 2020 – Australia) Open Banking has officially commenced with the launch of the consumer data right (CDR) giving customers greater access to their personal data.
The CDR is currently limited to transaction banking, debit cards and credit cards. Data sharing for home loans, personal loans and joint accounts will begin in later Q4 2020. Initially only customers with the Big Four majors will be part of the system with other banks to integrate with the system over the next 12 months. ING has already released product reference data to open banking developers. There are two accredited third-party data recipients that are eligible to participate in the regime, with a further 39 providers in the process of becoming accredited.
Open Banking is set to provide major benefits and opportunities by enabling greater access to data. New innovations, greater choice, more transparency and competition, easier ways to transact and manage products or service are all key benefits highlighted by the Australian Banking Association (ABA).
The Australian Competition and Consumer Commission (ACCC) oversees the CDR’s ‘Register & Accreditation Application Platform’, responsible for approving accreditation requests and upholding security and privacy protections underpinning the regime.
“Importantly it allows consumers to share that data with other businesses, such as Fintechs, that may be able to provide them more personalised services and competitive offers” said ACCC Commissioner Sarah Court.
“We are pleased that we have reached this significant milestone with the consumer data right going live, so consumers can now request their data relating to their deposit or transaction accounts, credit or debit cards to be shared securely in order to receive those offers – without all the time and energy that it would normally take for a consumer to do this on their own” she added.
"Australians will be able to unleash the power of their own data to compare and switch banking products as the Morrison Government officially launches the Consumer Data Right. Following the successful implementation by the four major banks of the IT infrastructure needed to enable the Consumer Data Right in banking, Open Banking will now commence in relation to deposits, transaction accounts, credit and debit cards” stated Federal Treasurer Josh Frydenberg.
"Open Banking is a game changing reform for Australians and will revolutionise the way that consumers and small businesses use their data to compare prices and switch between products and providers in the banking sector... it will also allow consumers to share their data with other banks to make it easier to compare and switch and get access to the best deal for them” Mr Frydenberg added.
“From today, customers will be able to give permission to accredited third parties to access their banking data while they search for a better deal on banking products. This sharing of data is a watershed moment for competition in the banking industry and, in time, will enable every Australian to use their data for their own benefit” stated ABA CEO Anna Bligh.
“Customers can be assured that they will always be in control of how and when they share their data. This is a great achievement by the major banks. Despite moving the majority of their workforce to work from home and processing unprecedented numbers of customer queries and loan deferrals as a result of COVID-19, the banks have stayed on plan and delivered Open Banking and ensured the data will start to be shared from today” she added.