You can’t do much reading on Open Banking without coming across the term Consumer Data Right. The Consumer Data Right, also known as the CDR, is federal legislation that allows Australians to access their own consumer data and consent to share it with accredited recipients, controlling which data is shared and how long this data is to be shared with the recipient. Any organisation wanting to receive data using the CDR has to become an Accredited Data Recipient, which requires them to meet privacy and information security requirements set by the ACCC. Safety is a prime concern for the CDR with the Australian Government committing $90 million over the next 5 years to provide regulatory agencies with the resources to enforce data recipient compliance.
The Consumer Data Right was created based on the recommendations of the 2017 Review into Open Banking in Australia, but Open Banking is only the first application of the Consumer Data Right. The next sectors to be covered by the Consumer Data Right are energy and telecommunications. The CDR Energy Standards are currently in a draft state with the second round of feedback closing April 15th.
The banking, energy and telecommunication sectors are just the beginning for the Consumer Data Right with plans to implement the right in all sectors of the Australian economy. As more sectors are enabled and consumers are given an integrated view of their data the CDR will become the most powerful consumer tool since the Internet itself. With the ability to retain and easily transport their own consumer data history Australians will be able to quickly and accurately assess the best deals for banking, utilities, investment products and much more while benefiting from faster application approvals and account creation.
The applications of this level of data sharing are only now just being considered. The Consumer Data Right will offer safety and control to Australian consumers while creating a new market for innovative, data-driven solutions to deliver on the promises of this massive transformation of the Australian business landscape.