The Australian Government has introduced a Consumer Data Right (CDR) framework designed to give consumers more rights and control over their personal data. The CDR will give consumers the right to safely access their data held by businesses and direct it to be transferred to trusted third parties of their choice.
The CDR framework has led to the creation of what is known as Open Banking - a new system that makes it easier for consumers to share their banking and financial data with organisations accredited by the Australian Competition and Consumer Commission (ACCC).
The first phase of Open Banking involves only sharing of generic information about a bank’s products and services. This information will be made available as ‘Product Reference Data’.
The second phase will involves consumer account and transaction data, or ‘Consumer Reference Data’. Please be assured that the decision to take part in this phase of Open Banking is entirely yours and you will have control over who can access your financial data.
You may choose to share some of following data:
Personal information such as your phone number, email and address.
Details of your account balances and transaction details including amounts spent.
Information about your financial products such as the interest rate and fees.
What does it mean for you?
As Open Banking develops it will become easier for you to compare products and services, and switch between different financial institutions. Additionally, it allows third parties to create and offer new financial products and services.
Developers can view our Open Banking Product API here.
How secure is Open Banking?
Under Open Banking your personal data remains very secure. The financial institutions and other accredited organisations involved in Open Banking need to follow strict security standards at all times.
Your Open Banking data is protected by;
A strict accreditation process with the ACCC for the banks and third parties before they can access banking data.