Australia Gets Ready For Open BankingFebruary 14 2020
"Its a very exciting time for Australia as we get closer and closer to rolling out open banking. It is a very positive step forward for consumers in the country." Ben Crow - Chief Operating Officer, WLTH
Australia's competition watchdog has finalised the rules governing Consumer Data Right regulations, paving the way for the introduction of Open Banking in the country.
In addition to legally requiring the four major banks to share product reference data with accredited data recipients, the Rules also give legislative force to consumer data sharing obligations in banking that become mandatory from 1 July 2020.
Product reference data includes information such as interest rates, fees and charges, and eligibility criteria for banking products like credit cards and mortgages.
“Product reference data is vital for accredited data receiving businesses to provide comparison services and potentially offer better deals to consumers,” ACCC Commissioner Sarah Court says. “Having the Consumer Data Right Rules in place means that from July this year, when consumers choose to direct their bank to share their data with another accredited data recipient, the banks must do so."
Initially slated for introduction this month, the ACCC in January delayed the roll out to July amid concerns over testing and security of the new provisions for account data sharing.
Under the guidance, consumer data relating to credit and debit cards, deposit accounts and transaction accounts must be made available from 1 July 2020.
Consumer data relating to mortgage and personal loan data must be able to be shared from 1 November 2020.
Last month, Treasurer Josh Frydenberg announced a fresh inquiry into the Consumer Data Right to examine further ways to build on initial progress. It will include looking at potentially expanding the Consumer Data Right beyond just 'read' access to also 'write' access so consumers can apply for and manage products, which in open banking would include initiating payments, a move lobby group Fintech Australia has pushed for, like in the UK's regime.
Finextra. (2020, February 11). Australia gets ready for Open Banking. Retrieved from https://www.finextra.com/newsarticle/35264/australia-gets-ready-for-open-banking