Government changes to Australia’s Consumer Data Right a win for fintech sector

The Morrison government confirmed the changes on Tuesday which include allowing ACCC-accredited CDR participants to sponsor other parties, allowing consumers to disclose limited data insights outside the CDR and simplifying the data-sharing process for consumers who use joint accounts.

FinTech Australia’s Rebecca Schot-Guppy — who will step down from the role in November — said the new changes directly address the suggestions the industry made to the government.

“For instance, in the UK, introducing a data affiliate model significantly spurred the growth of its open banking regime. This is yet another step forward for the industry in seeing the CDR and open banking increase competition and lead to better consumer outcome,” Ms Schot-Guppy said.

“Despite the progress we have made so far, we can’t take our eye off the ball just yet. The framework still needs to be continually tweaked and improved.

“We look forward to working with further consulting with the federal government on this matter and ensuring the CDR framework continues to drive positive change in the fintech industry and for Australian consumers.”

The CDR is considered a key initiative in the government’s $1.2 billion digital economy strategy, which Minister for Superannuation, Financial Services and the Digital Economy Jane Hume said is a game changer for digital innovation in Australia.

“The rules made today are an important step in supporting the development of a vibrant data economy that provides benefits to business and consumers,” Ms Hume said.

“The government is committed to supporting businesses and consumers to participate in the Consumer Data Right and will continue to ensure that the rules support that objective.”

Neil Griffiths

Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.

Neil is also the host of the ifa show podcast.