Sunday, June 26, 2022

The Australian Government wants feedback on the next steps in open financing of Consumer Data Law

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Discussions on extending the Consumer Data Right (CDR) to open finance have been launched by the Australian government.

A consultation document released today calls for public input on datasets from non-bank lenders, giving fintechs the opportunity to develop innovative use cases for consumers.

Earlier this year, the federal government announced “Open Finance” as the next focus for expanding the CDR to build on the initial rollout of Open Banking. In the next phase, the number of financial products and services covered by CDR will be expanded to include non-bank lending, merchant acquiring, general insurance and pensions.

The 20-page consultation paper points out that digitizing the Australian economy could deliver up to $315 billion in benefits over the next decade. CDR is an important aspect of Australia’s 2030 Digital Economy Strategy and a new pillar of competition policy.

The CDR is also a fundamental right for Australian consumers and businesses to control the data generated about them, to share and derive value from this data and to access the many benefits of advances in the field. of digital infrastructure and capabilities.

Retirement, financial services and the digital economy minister said Senator Jane Hume’s move into new financial sectors aims to increase the value of existing CDR data through cross-sector applications to give consumers a more complete picture of their finances.

“We are seeking industry feedback on how adding non-bank lending datasets to the CDR will impact providers and benefit consumers,” she said.

“Engagement with industry and stakeholders every step of the way is a key feature of our path to the economy-wide adoption of CDR. Not only does it support practical implementation and explore benefits, it also ensures that we build a high-quality and robust data access system together,” she said.

The government plans to hold further consultations later this year on extending the CDR to the acquiring, pension and non-life insurance sectors.

The consultation document is at the Treasury website† Registration closes on Tuesday 12 April.

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