Open Banking in Australia
Open Banking in Australia is part of a bigger picture that envisages cross-economy data sharing and control. It’s called the Consumer Data Right (CDR) and it went live via a phased rollout in the banking sector from 1 July 2020.
What is the CDR?
In the words of its chief architect, banking lawyer Scott Farrell, the CDR is: “a digital concierge” and “a Power of Attorney for the whole economy.”The lead regulator is the Australian Competition and Consumer Commission (ACCC) which is responsible for the CDR Rules that govern the accreditation process, the consent management framework and on-boarding.In Australia, the initial Data Holders designated to share data were the Big 4 banks who cover some 80% of the market, namely, Commonwealth, NAB, Westpac and ANZ. The other banks (Authorised Deposit-taking Institutions or ADIs) are coming live from 1 July 2021.To receive data, you must become an Accredited Data Recipient (ADR) in your own right or you can be sponsored as an Agent. TrueLayer has published a to help you understand this process and our team are .
Rollout of CDR
Australia’s CDR is being rolled out in stages. Initially, it applies to the banking sector, followed by energy and then telecommunications. Other sectors may also be included, for example, insurance and superannuation. Within banking, there is a phased rollout. The Big 4 banks are first, then the smaller banks, then the ADRs. Additionally, there is also a staged approach to adding increasingly more product data sets or “product reference data” starting with savings accounts, then moving to loans and finally more complicated business banking products and leases. There is a handy “phasing infographic” on the Australian Government’s dedicated which visually summarises the rollout’s stages. The official are called the Consumer Data Standards and have been developed by the CSIRO’s Data61 and the are covered by the Office of the Australian Information Commissioner (OAIC).
Open banking: Australia vs. UK
If you’re wondering how the Australian market is similar to, or different from, the UK, we have a helpful on that. Big picture the similarities are that consumers can aggregate and share their banking data. Some differences are that most businesses are also included in the CDR and payments and other action initiation items are not quite there yet. The roadmap for the continued development of the CDR was laid out in a report by Scott Farrell published on 23 December 2020 called “” and it contained some 100 recommendations. Our local team in Australia are working very closely with all the relevant stakeholders, contributing the benefit of our international experience. Australia’s progressive and forward-thinking approach to data sharing is an exciting opportunity to explore.