ACCC-backed Consumer Data Right for open banking goes live
The Consumer Data Right (CDR) has officially gone live and in its first phase, it requires financial services to share its customer’s data when requested by the customer. The scheme has been designed to give customers greater control over their data. The ACCC provided legislative rules on the CDR and its data-sharing obligations in the banking sector in February and has been made effective as on 1st July 2020.
In this open-banking like structure, customers of the big four banks can request their respective banks to share their own data for transaction and deposit accounts. The big four banks of Australia are ANZ Bank, National Australia Bank (NAB), the Commonwealth Bank of Australia (CBA) and Westpac. Customers can also request their credit and debit card data to other banks in addition to the Australian Competition & Consumer Commission (ACCC) accredited financial services. From November 1st, data from joint accounts, personal loans, home loans and investment loans of the customers will also be added to the scheme.
More about the Consumer Data Right
The Consumer Data Right will allow customers to ‘own’ their data by giving them open access to their banking, internet, energy and phone transaction data. They will also be granted control to manage who can have and use this data. The CDR platform will help them monitor their utilities, finances amongst other services.
On 1st July 2020, the Consumer Data Right launched to support the interaction of data holders and accredited data recipients, such as banking and financial services. Sarah Court, the ACCC commissioner, said in a statement the Consumer Data Right gives consumers control over data and information banks already collect about them. She adds the platform will enable businesses to offer more competitive offers and personalised services to the customers.
The accreditation procedure
The CDR Register and Accreditation Application Portal was launched by the ACCC in May. Since its launch, the ACCC has received applications from more than 39 prospective data recipients to begin the accreditation procedure. 2 accredited data recipients have already finished the necessary protocol to securely receive data. The prospective data recipients who have already applied for accreditation are expected to go live from September 2020.
The ACCC said all businesses accredited by them have to undergo a meticulous process to ensure they meet the required privacy, security and transparency standards. The businesses also need to demonstrate that their tech solution is in compliance with the Consumer Data Right rules and standards.
With the Consumer Data Right going live, the ACCC is pleased that they have reached this significant milestone. The Consumer Data Right Register & Accreditation Application Platform provided by the ACCC is responsible for accrediting data recipients. In addition to the ACCC, maintaining privacy and security will be the priority of the Data Standards Body (DSB) and the Office of the Australian Information Commissioner (OAIC) as well.
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