Consumer Data Right: what open banking in Australia needs now it’s one year old
As we celebrate the first birthday of Australia’s Consumer Data Right, what's needed to make open banking a success in Australia?
With a year of open banking underway in Australia (the first birthday of the was on 1 July), we know that many of our global clients are evaluating their go to market options for open banking in Australia.So what still needs to be done to enable companies to launch successfully here – and what is TrueLayer doing to help? In this blog, I'll cover three critical areas that Australia's finance sector needs to address to make open banking a success for consumers and businesses: consumer participation, competition and confidence.
Consumer participationThe key to open banking success is consumer buy-in, but first we need to create the right use cases which deliver value for Australians. With five years of experience in the UK, TrueLayer is already – for example, we work with digital banks like to make it easier for consumers to transfer money, and accountancy firms like Coconut to help SMEs with their finances, through automated accounting.To enable these and other use cases in Australia:
- More businesses need to – entities that can receive data.
- Banks and credit unions need to speed up compliance with open banking criteria
- from Treasury need to become law, which includes new options for accessing open banking data, eg through , representative and unaccredited insight models.
- We need to simplify the process around joint accounts. The updated rules seek to introduce a “default-on” model for joint accounts, but won’t be available until 1 April 2022. Until the new rules come into play, joint accounts are subject to opt-in rules for both account holders.