Consumer Data Right law passed – Open Banking set to start in Australia

Thursday 1 August 2019 11:55 CET | News

The law to establish the Consumer Data Right (CDR) has been passed by the Australian Parliament.

The way is now clear for Open Banking to start in Australia, as the first implementation of the CDR. After so much work has gone into the development of CDR and Open Banking, customers will soon have the right to ask for their data to be shared with others they choose to trust.

Now is the time for businesses connected with the banking, energy and telecommunications sectors to work out not only what they will need to do for their customers, but also what new services they will be able to provide. Businesses in other sectors should also engage with what the implementation of CDR in their sector could mean.

In Australia, Open Banking is the first part of the Consumer Data Right. The Consumer Data Right is a general right created for consumers to control their data, including who can have it and who can use it. It is to form a single customer-driven data sharing framework across the Australian economy. After banking, more sectors of the economy (including energy and telecommunications sectors) will follow. Background on the Consumer Data Right is summarised in this recent Alert. The implementation of Open Banking as the first stage of Consumer Data Right follows the recommendations of the Australian Government’s Open Banking Review, which emphasised customer control, choice, convenience and confidence.

The data which must be shared at a customer’s request is information about:

  • Banking products (product data)

  • The user of banking products (customer data)

  • The use of banking products (transaction data).

More information on this can be found in this Alert and in the regulatory framework for Open Banking.

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Keywords: Australia, Consumer Data Right, Open Banking, Open Banking Review, data, regulation
Countries: World