ACCC mean business with CDR, but what exactly is Consumer Data Right?

people using phones to bank with consumer data right CDR allowing open banking

Bank of Queensland have paid a $133,200 fine for alleged breaches of Consumer Data Right (CDR) rules.

This is the first charge the Australian Competition and Consumer Commission (ACCC) has made with regards to violation of the CDR, which came into effect in the banking in 2020. 

The ACCC alleged that BOQ was unable to share financial data following a July 1, 2021 deadline. What can we learn from this? The ACCC isn’t taking things lightly when it comes to CDR. 

Open banking is starting to take up some serious space in Australia’s banking sector, which makes the regulation of the space important. Banks handle some of our most important and personal information, so it’s essential that this is being monitored.

What is Consumer Data Right?

Per the CDR website, Consumer Data Right “gives you more control over your data, enabling you to access and share your data with accredited third parties to access better deals.”

What this means in practice is giving you the opt-in opportunity to allow your banking institutions to securely share information. You have full visibility of who this information is being shared with - a welcome change from the murky feeling of ticking an “allow access” box on your phone.

CDR was set up by the government and as such is monitored both by the ACCC and the Office of the Australian Information Commission (OAIC). It can be used by individuals over 18 as well as businesses for their bookkeeping. Complaints can be lodged with the Australian Financial Complaints Authority (AFCA) or the OAIC.

What’s in it for me?

Having your information shared amongst banks and registered third party providers sounds a little bit scary, but the key word in all of this is security. Knowing that the sharing of your information is being done securely, knowing who it’s being shared with, and knowing that it’s being policed adds transparency to this process.

The aim of CDR is to allow you greater freedom of choice. Open banking apps like Frollo allow you to select which bank is offering the most attractive deal with multiple providers housed in the one place. 

It also gives third party providers the ability to provide more accurate comparisons with personalisation for your information. 

What’s next for CDR?

2022 has enabled personal loan and business banking information to be shared securely, spreading the benefits of open banking to those areas.

The end of 2022 into 2023 will see CDR being rolled out into the energy sector. With seriously high energy costs being the talk of the town, this could be a total game-changer for weary wallets. 

Find out more about developments in the tech world at our Fintech hub.