Derived data to be included in open banking: Treasury

The government has released its response to the first stage of consultation about the open banking designation instrument and has confirmed how it will deal with derived data.

Derived data exists in the 1988 Privacy Act and refers to any data that is not raw; for instance, data that is changed from one format to another.

The government has confirmed that the consumer data right regime must be able to apply some data sets that are processed by the holder (derived) and not just data collected or observed by the holder (raw).

The Treasury department’s rationale is that if derived data were to be excluded, then data holders may be able to avoid their obligations to make data available to consumers and to protect consumers by making most, if not all, data that they hold derived.

The bill now reflects that raw transaction data and a wider range of derived data sets are to be included but provides a number of safeguards so that access rights to derived data doesn’t become too broad.

Access rights to derived data will now only occur if the minister specifies that data in the designation instrument and sets limits on the scope of requirements to derived data.

To read more, please click on the link below…

Source: Derived data to be included in open banking: Treasury – InvestorDaily