The new Consumer Data Right bill will introduce a data right allowing Australians access to the “right information” needed to get better deals on banking products and eventually energy and telecommunications, Scott Morrison said in a statement this morning.
“Customers will determine which data is shared, on what terms and with whom. The Consumer Data Right is a right for customers and not for those who wish to access or use a customer’s data,” he said, introducing the exposure draft legislation.
“No longer will Australians be left in the dark by banks and financial service providers.”
Referring to the findings from the recent Product Commission review on competition in Australia's financial system, Mr Morrison noted the average household could save up to $1,000 on their mortgage a year if they just switched to a different lender.
The problem is, for a lot of Australians, complacency is a barrier, while others just don’t know how.
“With over 4,000 different residential property loans on offer, it is no wonder that customers struggle to determine which home loan is best for them,” Mr Morrison said.
“Many customers need help in managing this complexity – in assessing, selecting and using those offerings. The Consumer Data Right will enable customers to get assistance and tailored support from third party service providers, by granting access to their data.”
The Consumer Data Right will allow customers to direct that their information be shared with accredited recipients. They will also be able to choose the data they want shared, on which terms and with whom.