Basiq: How updates to the Consumer Data Right rules ‘sponsor’ a more inclusive Open Banking ecosystem
In Australia, Open Banking is being facilitated under Consumer Data Right (CDR) legislation. The CDR mandates the opening up of consumer data to power data-driven financial services that let consumers access more convenient, cheaper and innovative solutions to manage their money. The Australian Government has just taken a big step forward in facilitating a more inclusive Open Banking ecosystem by formalising a Sponsorship model under the CDR. This is great news for our customers and businesses, who can now access CDR data via our single API, without the need for full accreditation.
Back in June, Treasury and the ACCC opened a draft version of the CDR rules for industry feedback. Much of the feedback from Basiq and the fintech community focused on how complex rules and a resource-intensive path to participation would handicap Open Banking’s rollout. Both Treasury and the ACCC have been quick to take into account and formalise some of the feedback provided in the new CDR rules.
Basiq, an accredited Open Bankig platform will be able to provide customers with both CDR and non-CDR data via a single unified API, without needing to be an unrestricted Accredited Data Recipient (ADR). Specifically, Basiq can act as a Sponsor to multiple Affiliates (our customers) and provide CDR data alongside enhanced services such as merchant identification, transaction categorisation and Consumer Insights from the first of February 2022.
Another win worth mentioning is the amendment of CDR rules for UX and joint accounts. Sharing of data will now be on by default on the source account which will greatly improve the consumer experience when consenting to sharing data from a shared account.
Basiq will provide facilitation of the consent process, registration, Data Holder selection and the consent flow, and regularly refresh that data in our platform and overlay the required governance so it is ready for our affiliates to consume whenever they wish to have an updated view of their consumers.
Basiq will also assist their Affiliates with becoming an affiliate data recipient and enable them to:
- Access appropriate assistance or training on technical and compliance matters
- Understanding of the shared liability model
- Understanding compliance with dispute resolution obligations, the privacy safeguards and consent rules.
- Understanding their use and disclosure of CDR data they receive, and management of CDR data in accordance with the obligations under the Act and rules.
- Their conduct when using or disclosing CDR data to provide innovative goods and services
The updated rules are a huge win in driving Open Banking adoption and innovation, and will help Basiq support more customers and businesses in making access to CDR data as simple and frictionless as possible.
If you’d like to learn more about transitioning to Open Banking, you can download Basiq’s free Open Banking Transition checklist and guide: https://basiq.io/open-banking-transition-guide-download.html