Open Finance launch to give consumers 'holistic' view: Treasury

After kicking off its Consumer Data Right scheme with Open Banking, the Morrison government will extend the program to finance in a move that should make it easier for consumers to share information across general insurance, superannuation, merchant acquiring and non-bank lending service providers.

Open Finance will be the fourth sector to be covered by the data portability scheme, which allows companies to act on behalf of consumers when doing things like making payments and applications.

Banking was the inaugural sector to be a part of the CDR in 2020, followed by the energy sector. Treasury announced on Monday that telecommunications would be next, followed by finance.

Despite the reportedly slow takeup of Open Banking, Treasurer Josh Frydenberg said he was confident the move to Open Finance will build on the “success” of the initial rollout, and “allow consumers to compare and save across a greater range of products”.

In particular, spreading the CDR to finance will open the door for providers to create better and more beneficial apps for consumers, the Treasurer believes.

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Source: Open Finance launch to give consumers ‘holistic’ view: Treasury – Professional Planner