Consumer Data Right now live

The consumer data sharing platform opens, with banking the first sector to allow people to more easily shop around for better products and services

The Consumer Data Right has launched today, enabling consumers to share their banking data for transaction accounts and credit and debit cards to gain more personalised financial products and services.

In making the announcement, Australian Competition and Consumer Commission (ACCC) commissioner, Sarah Court, said the consumer data right is a significant milestone and gives consumers control over sharing their information. This may be able to provide them more personalised services and competitive offers without all the time and energy it would normally take for a consumer to do this on their own, she said.

As at launch, there are two accredited data recipients that have completed the necessary steps to securely receive data. A further 39 providers have already begun the process to become accredited data recipients. And from the start of November, consumers will be able to share their data relating to home loans, investment loans, personal loans and joint accounts.

Financial institutions have reacted positively to the platform going live, with NAB saying it’s investing in the Open Banking regime and is focused on ensuring the safety and security of customer information.
The Commonwealth bank said the data-driven innovation has the potential to deliver new services and better products to Australian consumers.

“The investment in Open Banking will allow a well regulated and secure framework for the sharing of customer data in Australia and a substantial improvement over other, unsafe practices,” CBA group executive of retail banking services, Angus Sullivan, said.

The accreditation register for financial institutions opened in May, after being pushed back a few months in February, for businesses to apply to be recognised as Accredited Data Recipients. The register has two main functions: To create a trusted data environment where encrypted data is only shared between approved participants and to provide a portal where businesses can apply to be accredited.

The Consumer Data Right legislation followed a Productivity Commission inquiry that called for a revolution of the country’s data policy framework. The legislation was announced in November 2016 and the plan received $44.6 million in last year’s Federal Budget to implement a framework for consumer data portability and transparency, and to give consumers greater control of their data. 

In terms of its impact on the industry, Accenture A/NZ banking lead, Alex Trott, commented that the newer ‘challenger’ banks may be able to grab an advantage with open banking as they look to gain greater market share and create unique, digitally led customer experiences.

“Less encumbered by legacy technology, they are at an immediate advantage, but they also will need to work hard to gain consumer trust, when the others have a strong Australian heritage,” Trott said.

“Customers won’t immediately see a ‘big bang’ of activity, but they will benefit from more tailored and intuitive products and services, quicker applications, new ways to manage their finances, easier inter-bank account switching, and more responsible lending practices,” he said.

Banking is the first industry it is being applied to, under the Open Banking regime, with energy and telecommunications sectors to follow. The ACCC will commence consultations on the proposed rules for the energy sector shortly.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, follow our regular updates via CMO Australia's Linkedin company page, or join us on Facebook: https://www.facebook.com/CMOAustralia


Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

Conversations over a cuppa with CMO: Microsoft's Pip Arthur

​In this latest episode of our conversations over a cuppa with CMO, we catch up with the delightful Pip Arthur, Microsoft Australia's chief marketing officer and communications director, to talk about thinking differently, delivering on B2B connection in the crisis, brand purpose and marketing transformation.

More Videos

Great content and well explained. Everything you need to know about Digital Design, this article has got you covered. You may also check ...

Ryota Miyagi

Why the art of human-centred design has become a vital CX tool

Read more

Interested in virtual events? If you are looking for an amazing virtual booth, this is definitely worth checking https://virtualbooth.ad...

Cecille Pabon

Report: Covid effect sees digital events on the rise long-term

Read more

Thank you so much for sharing such an informative article. It’s really impressive.Click Here & Create Status and share with family

Sanwataram

Predictions: 14 digital marketing predictions for 2021

Read more

Nice!https://www.live-radio-onli...

OmiljeniRadio RadioStanice Uzi

Google+ and Blogger cozy up with new comment system

Read more

Awesome and well written article. The examples and elements are good and valuable for all brand identity designs. Speaking of awesome, ch...

Ryota Miyagi

Why customer trust is more vital to brand survival than it's ever been

Read more

Blog Posts

A Brand for social justice

In 2020, brands did something they’d never done before: They spoke up about race.

Dipanjan Chatterjee and Xiaofeng Wang

VP and principal analyst and senior analyst, Forrester

Determining our Humanity

‘Business as unusual’ is a term my organisation has adopted to describe the professional aftermath of COVID-19 and the rest of the tragic events this year. Social distancing, perspex screens at counters and masks in all manner of situations have introduced us to a world we were never familiar with. But, as we keep being reminded, this is the new normal. This is the world we created. Yet we also have the opportunity to create something else.

Katja Forbes

Managing director of Designit, Australia and New Zealand

Should your business go back to the future?

In times of uncertainty, people gravitate towards the familiar. How can businesses capitalise on this to overcome the recessionary conditions brought on by COVID? Craig Flanders explains.

Craig Flanders

CEO, Spinach

Sign in