The ACCC has formally set the rules for the Consumer Data Right (CDR) which detail how the scheme works and what the banks are legally required to do when open banking begins on July 1, 2020.
Legislated in 2019, the Consumer Data Right will give consumers the right to safely access data about them, held by businesses, and direct this information be transferred to trusted third parties of their choice. It will first be adopted in financial services where it is known as open banking.
The rules are a key development in progressing CDR in banking, which mandates the big four banks must begin sharing data from 1 July 2020.
Under the original timeline open banking was due to begin this month, however the deadline was pushed back prior to Christmas.
The rules legally require Australia’s four big major banks to share product reference data with accredited data recipients, 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.
Consumer data relating to mortgage and personal loan data must be able to be shared from 1 November 2020.
“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 said.
“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.”
The ACCC has the lead role in rolling out the consumer data right, which includes rule-making, accreditation of data recipients, consumer education, enforcement and developing a secure register of authorised data recipients and data holders to facilitate the sharing of CDR data.