The Treasury has announced that Open Banking is now in place in Australia after the official launch of the ‘Consumer Data Right’.
Treasurer, Josh Frydenberg said Open Banking would revolutionise the way consumers and small businesses used their data to compare prices and switch between products and providers in the banking sector.
“The Government has been working closely with the four major banks, the FinTech industry, the Australian Competition and Consumer Commission (ACCC) and (CSIRO’s) Data61 to design, build and test the rules and infrastructure,” Mr Frydenberg said.
“This will allow consumers to securely direct their banking data to another major bank or accredited FinTech provider.”
He said FinTechs that became accredited through the ACCC would be able to connect into the system and with a consumers express consent; be able to use the latest technology to analyse their data and help them determine whether their banking products were best suited to their needs.
“Open Banking will also allow consumers to share their data with other banks to make it easier to compare and switch and get access to the best deal for them,” Mr Frydenberg said.
“Importantly, the regime has strict privacy and security protections and allows consumers to control what data is shared, with whom and for what purposes.”
The Treasurer said the Office of the Australian Information Commissioner (OAIC) would be responsible for regulating privacy under the Consumer Data Right system.
Australian Information Commissioner and Privacy Commissioner, Angelene Falk said ensuring Consumer Data Right providers understood and complied with the privacy safeguards was a key priority for the OAIC.
Mr Frydenberg said that from 1 November, the range of banking products available under Open Banking would be expanded, allowing customers of the four major banks to access and share their mortgage, personal loan and joint account data.
More information about the Consumer Data Right can be accessed at this PS News link.
