Treasury to open up Consumer Data Right

Treasury to open up Consumer Data Right

Treasury is developing new rules for Australia’s Consumer Data Right which would significantly expand businesses’ access to consumer data, following criticism that the accreditation requirements to participate are too high.

Under the proposed changes, an accredited data recipient (ADR) will be allowed to give third parties access to the data portability scheme on their behalf but would retain liability for their actions. ADRs would also be able to sponsor other parties such as fintechs to become accredited.

Treasury has also proposed allowing consumers to give “trusted advisers” like lawyers and mortgage brokers access to their CDR data even when they are not formally accredited.

Consumers would also be able to share certain “insights” from CDR data to help verify thing like their identity and income level for services like loan applications.

The CDR, which is first being applied through open banking, allows users to request access to their data in a machine-readable way. More portable data is expected to drive innovation and increase competition by lowering the barriers for consumers to switch providers like banks, energy companies and telcos.

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Source: Treasury to open up Consumer Data Right – InnovationAus