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The Consumer Data Right is now live: What does this mean?
With the permission of a customer, banks are now be able to share consumer data with other banks, thanks to the Consumer Data Right system. So, how will this system actually benefit Australians?
The Consumer Data Right is now live: What does this mean?
With the permission of a customer, banks are now be able to share consumer data with other banks, thanks to the Consumer Data Right system. So, how will this system actually benefit Australians?
The Australian Competition and Consumer Commission has revealed that now that the Consumer Data Right (CDR) has gone “live”, all four major banks are now capable of sharing their customers’ data when this is requested by the customer.
This means that from today, individual customers can request that their bank share their data for deposit and transaction accounts and credit and debit cards, where the customer is potentially wanting to access a financial product from a competitor that could be better suited to them – whether that be based on price, terms and conditions of the product, or tailored offerings.
From 1 November, the CDR will also see consumers able to share their data related to home loans, investment loans, personal loans and joint accounts for the same purpose, with other banks and financial institutions to join the scheme over the coming year.
According to ACCC commissioner Sarah Court, the CDR “gives consumers control over information banks already collect about them”.
“Importantly, from today, it allows consumers to share that data with other businesses, such as fintechs, that may be able to provide them more personalised services and competitive offers.”
She called the CDR’s going live a “significant milestone”.
“Consumers can now request their data relating to their deposit or transaction accounts, credit or debit cards to be shared securely in order to receive those offers – without all the time and energy that it would normally take for a consumer to do this on their own,” Ms Court said.
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