Australian government revises Consumer Data Right framework

Specifically, the Albanese Government has launched a consultation process aimed at modifying consent and operational rules. The proposed adjustments are designed to simplify the consent process for consumers by allowing them to provide multiple consents simultaneously. Additionally, the government plans to extend the CDR to non-bank lending sectors by early 2025, with a target implementation by mid-2026. These changes are part of a broader effort to enhance the CDR framework to better meet consumer needs. 

During a recent address to the Committee for the Economic Development of Australia, Stephen Jones MP, Assistant Treasurer and Minister for Financial Services, acknowledged that while the CDR has potential as a transformative economic reform, its current implementation under the previous government has been flawed. He also mentioned that he has contacted the Data Standards Body to align their efforts with the government's new direction for the CDR. 

The government intends to impose a requirement on data holders, often banks, to streamline processes for businesses to access their own data. Additionally, the government aims to simplify data usage for banks by acknowledging their routine handling of such data.

Industry reactions

Representatives from FinTech Australia remarked that the recent updates provide much-needed clarity for the industry, helping to enhance the impact of CDR policies and offering some stability for fintech investors. Officials from Adatree praised the progress on operational improvements, such as streamlining consents and transitioning to digital business consents, noting that these changes address longstanding concerns. 

Representatives from at Arca agreed with Jones’s assessment and supported the push to end screen scraping. They emphasised the need for practical solutions to transition away from screen scraping while ensuring the CDR’s effective use in credit provision. 

The Chief Customer Officer of NextGen expressed support for the government's announcement, particularly the move towards a formal ban on screen scraping, which he believes will improve consumer safety. Last month, the Australian Banking Association released a review by Accenture, which found that the CDR is currently failing to deliver benefits to customers and is adversely affecting competition in the banking sector, despite significant investments by Australian banks.