In a sensible setback, the Australian Competition & Consumer Commission (ACCC) has delayed the roll out of Open Banking reforms in Australia by six months, because of the consumer regulator’s identification that more work is required in order to guarantee privacy and data security.
The Australian government initially announced plans to introduce the Consumer Data Right (CDR) in Australia on 26 November 2017, designed to give consumers greater control and access over their data. Over the last few months, the ACCC has been collaborating closely with the ‘big four’ banks: Commonwealth Bank, Westpac, ANZ Bank, and the National Australia Bank, and the nine initial data recipient bodies, to refine and assess the CDR system.
CDR was due to commence in February 2020, with the aim of allowing consumers to safely transfer their banking data to trusted parties. July 1st 2020 is the new deadline for major banks to share consumer data relating to credit and debit cards, deposit accounts and transaction accounts. Data sharing on mortgages and personal loans will be required on November 1st. The timetable for sharing product reference data remains unchanged: February 1st 2020 for major banks and 1st July 2020 for non-major banks.
The need to share consumer data relating to mortgage and personal loan accounts will continue to be delayed until 1 November 2020, as will more intricate data sets such as joint accounts, closed accounts, direct debits and scheduled payments.
“The CDR is a complex but fundamental competition and consumer reform and we are committed to delivering it only after we are confident the system is resilient, user friendly and properly tested,” says Sarah Court, ACCC commissioner, in a statement. “Privacy protection and information security are core features of the CDR and establishing appropriate regulatory settings and IT infrastructure cannot be rushed.”
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