Back in 2017-18, during the handing down of the Federal Budget, the Treasurer announced a new thing called Open Banking. As part of Open Banking, it was recommended that something called the 'Consumer Data Right' be created to make it easier for people to access the information banks hold on them and to make it easier to switch banks and keep all your data. Here are five things you need to know.
#1 What is the Consumer Data Right?
The Consumer Data Right (CDR) is a set of regulatory standards that allow entities that you give permission to the authority to read a set of personal data. The CDR defines a set of data that can be shared between entities that are certified and that you give permission to.
#2 Who does the Consumer Data Right apply to?
The CDR will apply to banks as part off the Open Banking intuitive. But it will eventually expand, with the utilities sector already identified as the next group of companies who will need to be ready to better access and share data. Telecommunications companies are also on the government's radar for the CDR.
And the new rules include the concept of reciprocity. If a service provider wants to access data through the CDR, they must be willing to also share the data they have.
#3 How can you use the the Consumer Data Right?
There are several ways you'll be able to use the CDR.
When you shop around for new financial products such as savings or cheque accounts, mortgages or credit cards, you can give a broker permission to access your data, including things like transaction records, so they can better match or tailor products to suit you.
If you bank with the Yellow Bank and want to move to the Blue Bank, you can give the Blue Bank permission, under the CDR, to see your personal data, including transactions, so they can better tailor a set of services for you and save you the hassle of providing them with a stack of data you might not have easy access to.
None of you data can be shared through the CDR without your consent.
#4 When does the Consumer Data Right become law?
The road to the CDR has been more complex than the government anticipated. The plan was to publish the CDR rules late last year. But the cops,plexity of the rules required a rethink and that has pushed things back a little.
That's a good thing given we are dealing with some very sensitive information.
The CDR commences operation on 1 July 2019 with the first data becoming available on 1 February 2020. But that will be a reduced set of data with some being held back until everyone is happy that the systems for sharing data work as expected.
#5 Where can you find out more about the Consumer Data Right?
Understandably, some of the information about the CDR is quite complex. But there are two documents I think are especially useful. The Consumer data right (CDR) Rules outline published by the ACCC is written in reasonably clear English and is a useful resource.