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

More Videos

Great piece Katja. It will be fascinating to see how the shift in people's perception of value will affect design, products and services ...

Paul Scott

How to design for a speculative future - Customer Design - CMO Australia

Read more

Google collects as much data as it can about you. It would be foolish to believe Google cares about your privacy. I did cut off Google fr...

Phil Davis

ACCC launches fresh legal challenge against Google's consumer data practices for advertising

Read more

“This new logo has been noticed and it replaces a logo no one really knew existed so I’d say it’s abided by the ‘rule’ of brand equity - ...

Lawrence

Brand Australia misses the mark

Read more

IMHO a logo that needs to be explained really doesn't achieve it's purpose.I admit coming to the debate a little late, but has anyone els...

JV_at_lAttitude_in_Cairns

Brand Australia misses the mark

Read more

Hi everyone! Hope you are doing well. I just came across your website and I have to say that your work is really appreciative. Your conte...

Rochie Grey

Will 3D printing be good for retail?

Read more

Blog Posts

How to design for a speculative future

For a while now, I have been following a fabulous design strategy and research colleague, Tatiana Toutikian, a speculative designer. This is someone specialising in calling out near future phenomena, what the various aspects of our future will be, and how the design we create will support it.

Katja Forbes

Managing director of Designit, Australia and New Zealand

The obvious reason Covidsafe failed to get majority takeup

Online identity is a hot topic as more consumers are waking up to how their data is being used. So what does the marketing industry need to do to avoid a complete loss of public trust, in instances such as the COVID-19 tracing app?

Dan Richardson

Head of data, Verizon Media

Brand or product placement?

CMOs are looking to ensure investment decisions in marketing initiatives are good value for money. Yet they are frustrated in understanding the value of product placements within this mix for a very simple reason: Product placements are broadly defined and as a result, mean very different things to different people.

Michael Neale and Dr David Corkindale

University of Adelaide Business School and University of South Australia

Sign in