Fintechs and banks can now apply for accreditation as a data recipient within Australia’s Consumer Data Right (CDR) regime following the launch of the underlying IT infrastructure that enables the data sharing environment.
ACCC’s Consumer Data Right Register and Accreditation Application Platform (RAAP) is now live, ahead of the July 1 launch, when banking data will begin to be shared securely between major banks and initial accredited data recipients.
The ACCC, which is responsible for governing the regime, said the RAAP is the IT backbone of the Consumer Data Right and serves two main functions: to create a trusted data environment where encrypted data is only shared between approved participants; and to provide a portal where businesses can apply to be accredited.
The CDR will give consumers the right to safely access their data held by businesses and direct it to be transferred to trusted third parties of their choice. It is first being applied to the finance sector, where it is referred to as open banking.
“This launch of this Consumer Data Right platform and portal means businesses of all sizes can take the first steps towards to being part of this crucial economic reform,” ACCC Commissioner Sarah Court said.
“As more businesses become accredited over time, consumers will benefit from an increasing number of innovative services and a vastly improved experience that puts them in control of their data.
“We are encouraging businesses wanting to participate in the Consumer Data Right regime to apply for accreditation and take part in reshaping banking competition in Australia,” Court said.
As part of the accreditation process, the ACCC will determine if applicants are fit and proper to handle consumer data, have in place the necessary measures to securely handle consumer data, are adequately insured, and can handle any complaints which may arise.
The ACCC said applicants should anticipate that the accreditation process may take around three months to complete before they can proceed to the onboarding processes.