ACCC takes "major step" towards open banking

by Madison Utley28 May 2020

The ACCC has launched a platform which enables banks and fintechs to apply to become an accredited data recipient in order to be able to fully engage in an open banking environment.

“The launch of this Consumer Data Right (CDR) platform and portal means businesses of all sizes can take the first steps towards being part of this crucial economic reform,” said ACCC Commissioner Sarah Court.

“We are encouraging businesses wanting to participate in the CDR regime to apply for accreditation and take part in reshaping banking competition in Australia.”

The newly-launched platform not only provides a portal where businesses can apply to be accredited, but is crucial in ensuring that consumers’ data is shared exclusively and securely between parties which have been vetted by the ACCC.

The CDR regime, also known as 'open banking', is intended to give consumers and small businesses greater control over their personal information through allowing banks and fintechs to provide safe and secure access of their data to trusted third parties.

With this capability, Australians will be able to make better decisions regarding the products and services they purchase and can switch between providers more easily.

The transition to the new system will challenge existing providers to better look after their customers and create room for new competitors to enter the market.

Applications to be an accredited data recipient have initially been opened to the fintech community, with interested institutions able to apply online at the Consumer Data Right website where they can also access the guidelines published to assist with the process.