Inquiry outlines 100 ways to improve CDR

Third parties should be given “action initiation”, the final report into the Inquiry into Future Directions for the Consumer Data Right has recommended.

Last year, Treasurer Josh Frydenberg called for an inquiry into how the functionality of the Consumer Data Right (CDR) could be expanded. Namely, the inquiry sought to understand how the CDR could be used to “overcome barriers to consumers conveniently and efficiently switching between products and providers”, and to consider ways to promote inclusivity among vulnerable consumers.

The inquiry, spearheaded by KWM partner Scott Farrell, reportedly considered formal submissions from 73 parties last year and has now released a swathe of recommendation in its full report.

The 257-page report makes 100 recommendations for the future of the CDR, broken down into four ‘directions’ or themes:

1. Beyond data sharing, towards data-empowered consumers
2. Beyond open banking, towards an economy-wide foundation
3. Beyond a standalone system, towards an integrated data ecosystem
4. Beyond Australia’s borders, towards international digital opportunities

The report emphasises the digital economy’s prevalence in CDR’s need to function effectively, alongside other frameworks and regulations, including consumer protection, information security, data protection and sectoral regulation.

Giving third parties more access

One of the main recommendations that could impact the third-party channel was the call for CDR to enable third parties, with a consumer’s consent, to initiate actions beyond requests for data sharing.

This could reduce many of the barriers to switching, as outlined in the ACCC’s report into home loan pricing.

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Source: Inquiry outlines 100 ways to improve CDR – Mortgage Business