FinTech Australia, Mastercard and OpenFinance ANZ puts the spotlight on the pace and rollout of Consumer Data Right (CDR) related services in Australia.
The Australian government launched the Consumer Data Right (CDR) initiative to give consumers greater access and control over their data. It aims to promote more competition and innovation in various service sectors, starting with banking, energy and telecommunications.
The fifth edition of Open Banking Ecosystem Map and Report provides an update on the CDR ecosystem before the May Federal Budget reviews federal funding for the CDR rollout. The Federal Government has allocated $88.8 million over two years in the 2023 Federal Budget to the expansion of CDR to non-banking areas.
According to the latest report, there has been a remarkable increase in engagement, with data recipients now comprising 66 percent of the ecosystem, an increase from 47 percent in December 2022. There was also a 15.52 percent growth in CDR representatives since May 2024, and the variety of use cases has grown to 197, touching a wide range of industries.
The changes in the regulations make it easier for consumers to give consent and for participants to manage their operations, effectively halving the time it takes for data holders to resolve disputes. which will be implemented from December 2022. These developments reflect the continuous tweaking of regulatory frameworks that support the growth of CDR.
Reforms
The report also highlights the need to monitor these reforms closely, especially as funding is due to expire in June 2025. It points out that maintaining momentum is essential for the continued success of the CDR and its practical benefits for of consumers.
Adoption of open banking principles in New Zealand represents a significant expansion of these ideas throughout the region. Key steps such as legislative consultations and the setting up of Payment Initiation API standards by major banks mark important milestones.
Major regulatory changes are on the horizon, and continued government support is seen as crucial to decisions in the upcoming Federal Budget that are likely to affect the future of open banking in Australia as well as beyond.
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