IBS Journal: The iconic monthly FinTech magazine

February 2020 issue out now! Subscribe now

Launching India FinTech Report 2020

Market sizing and forecast of Digital Lending, Payments, WealthTech & RegTech. Subscribe now

Leading Back Office Systems for Banks

In-depth Supplier Profiles and User Lists. Subscribe now

In-depth Banking Tech and FinTech Research

Over 300 research reports that's updated quarterly. Subscribe now

Consumer data sharing obligations mandatory from July 1, 2020, Australia

ACCCThe Australian Competition & Consumer Commission (ACCC) has declared the Competition and Consumer (Consumer Data Right) Rules, a crucial development in progressing consumer data rights in banking. Supplementary to legally requiring the country’s four major banks (ANZ, Westpac, Commonwealth Bank and NAB) to share product reference data with accredited data recipients, the rules provide legislative force to consumer data-sharing obligations in banking that become mandatory from 1 July 2020.

Sarah Court, Commissioner, ACCC elucidated, “Product reference data is vital for accredited data receiving businesses to provide comparison services and potentially offer better deals to consumers.”

Product reference data includes information such as interest rates, fees and charges, and eligibility criteria for banking products like credit cards and mortgages.

Sarah Court further stated, “…Having the Consumer Data Right Rules in place means that from July this year, when consumers choose to direct their bank to share their data with another accredited data recipient, the banks must do so. The making of the Rules is a major milestone in delivering the Consumer Data Right in banking.”

The major banks were sharing product reference data since July 2019 on a voluntary basis. The Consumer Data Right will empower consumers through the provision of the right to safely access data about them, held by businesses, and direct this information to be transferred to trusted third parties of their choice.

Data relating to credit & debit cards, deposit accounts and transaction accounts is expected to be made available from July 1, 2020, onwards. Consumer data relating to mortgage and personal loan data is expected to be able to be shared from November 1, 2020.

The ACCC will be working closely with the Data Standards Body and the Australian Information Commissioner (OAIC). ACCC’s role encapsulates rule-making, accreditation of data recipients, consumer education, enforcement and developing a secure register of authorised data recipients and data holders to facilitate the sharing of CDR data.

Related Posts