Government launches inquiry into CDR following open banking delay

The government has announced it is taking a closer look at CDR, after the launch of open banking was pushed back in December.

The CDR passed Parliament in August last year, with the Morrison government saying at the time was a “critical step” in reform.

The Consumer Data Right provides consumers with greater access to their personal information, giving them the power to instruct businesses to provide safe and secure access of their data to trusted third parties.

This allows consumers to more easily compare offers in the market and to take advantage of them should they wish to do so. The CDR also allows new competitors to enter the market and challenge existing providers.

The government’s latest inquiry is due to examine how the CDR can be expanded beyond its current “read” access to include “write” access to enable customers to apply for and manage products, including for open banking.

The inquiry will also look into the ability of CDR to leverage other frameworks to enhance security, efficiency and the consumer experience, including the New Payments Platform; as well as how it can be used to further overcome behavioural and regulatory barriers to allow consumers to conveniently and efficiently switch between products and providers.

Furthermore, the government is looking to enhance CDR by considering global developments with respect to similar reforms.

The review will be led by Mr Scott Farrell who undertook the formative review which gave rise to the newly legislated Consumer Data Right regime, and is set to draw upon technical expertise from the private sector by consulting broadly with industry, consumer and privacy advocates, and other interested parties.

The review will report by September 2020. An Issues Paper will be made available in early 2020 for interested parties to provide input and feedback.