Consumer data right kicks off, dozens more companies to join this year

Following the successful implementation by the four major banks of the IT infrastructure needed to enable the consumer data right in banking, open banking has now commenced in relation to deposits, transaction accounts, credit and debit cards.

Considered a game changing reform for Australians that will revolutionise the way that consumers and small businesses use their data, the system is expected to reach its potential later this year when dozens more companies are predicted to be accredited to help customers get a better deal. 

According to the government, there has been significant interest by fintechs to become accredited data recipients, with 39 providers currently in the process of being accredited by the ACCC. 

"From 1 November 2020, the range of banking products available under open banking will be expanded, allowing customers of the four major banks to access and share their mortgage, personal loan and joint account data. Non-major banks will allow their customers to share their data for each account type within 12 months," said Assistant Minister for Superannuation, Financial Services and Financial Technology Jane Hume. 

The more accredited companies means the more competition there is battling it out for Australian customers searching to get the best deal for them.

CEO of the Australian Banking Association Anna Bligh said that as the system ramps up it will provide consumers with greater access to personal information, as well as the ability to allow banks to provide safe and secure access to share their data with third parties.

“This sharing of data is a watershed moment for competition in the banking industry and, in time, will enable every Australian to use their data for their own benefit," said Ms Bligh. 

She stressed that customers will always be in control of how and when they share their data. 

“This is a great achievement by the major banks. Despite moving the majority of their workforce to work from home and processing unprecedented numbers of customer queries and loan deferrals as a result of COVID-19, the banks have stayed on plan and delivered Open Banking and ensured the data will start to be shared from today,” Ms Bligh said.  

Initially just the four major banks will be part of the system. Other banks will join in the next 12 months.