The Consumer Data Right (CDR), including Open Banking, is a revolution that has the potential to reshape banking in Australia.
With the consent of the customer, a broader range of businesses will have access to more data for a wide range of products and services (many of which are yet to be imagined and will evolve as a direct result of the improved data availability). This will bring massive benefits for competition and for consumers. However, the complexity of the Consumer Data Right, and the effort required to implement it, should not be underestimated.
While the Consumer Data Right is about much more than ‘credit’, ARCA is uniquely placed to work with businesses that want to take advantage of the new system to improve their credit management practices.
ARCA has, and continues, to push for improvements to the framework to improve the CDR system for credit providers. Central to our work is advocating for the needs and obligations of businesses while also providing for strong consumer protections – only by doing this will credit providers be able to participate in the CDR framework effectively.
ARCA’s focus is on the approach taken to customer consent, how the data minimisation principle and data redundancy/de-identification works in practice, and whether all of these are conducive to the efficient and effective use of the Consumer Data Right for credit management purposes, as well as producing the best consumer outcomes.