The Australian Competition and Consumer Commission (ACCC) has released the Consumer Data Right Rules outline for Open Banking, an initiative that will enable consumers to better compare prices and switch between products and providers in the banking sector.
The rules detail the principles with which Open Banking participants will need to comply. They follow the Government’s release of the Consumer Data Right legislation and explanatory memorandum earlier this week. The standards body, CSIRO’s Data61, has also released a second draft of technical standards that banks will be required to meet for the sharing of data with consumers.
The rules, legislation and standards reflect extensive stakeholder consultation which has taken place over through the Open Banking Review and by the ACCC, Treasury and Data61 over the last year. The Government thanks all stakeholders for their continued engagement so far and commitment to implementing Open Banking.
In implementing the Consumer Data Right, the Government is committed to ensuring that the security and privacy of consumers’ data paramount.
To ensure the long term success of the regime, a phased implementation has been adopted.
- From 1 July 2019, the big four banks will be required to publicly share product data about credit and debit cards, deposit accounts and transaction accounts.
- Also from 1 July 2019, the ACCC and Data 61 will launch a pilot program with the big four to test the performance, reliability and security of the Open Banking system.
- Consumers and FinTechs will be invited to participate in these pilots and the ACCC and Data61 will also work closely with other banks who have expressed an interest in participating in Open Banking earlier than originally envisaged.
- On 1 February 2020, product and consumer data for mortgage accounts will be made available.
- Once the ACCC is comfortable with the robustness of the system, banks will publicly share consumer data about credit and debit cards, deposit accounts and transaction accounts, which will be no later than 1 February 2020.
- From 1 July 2019, the ACCC will begin formally engaging with parties interested in accreditation.
Increasing competition in the banking sector to give consumers more choice, lower prices and better service is part of the Coalition’s plan for a stronger economy.
The rules, legislation, standards and a comprehensive timeline can be found here.