Australians will have more power to compare and switch home loans and credit cards, as well as energy and phone and internet companies, after the Government passed new laws through the Parliament today.
The news laws are a game changer for Australians. The Consumer Data Right will revolutionise the way consumers and small businesses use their data and not only help them switch to cheaper offers, but encourage competition between service providers, leading to better prices and more innovative products and services.
The laws give consumers more control over their data which will help with the development of better and more convenient products and services that are customised to individuals’ needs.
The Consumer Data Right will first launch in the banking sector, through what is known as Open Banking, followed by the energy sector and with the telecommunications sector proposed to follow.
Progress to the February launch of Open Banking is well advanced. This next stage will give consumers greater access to the information that banks hold on them.
Open Banking will also give consumers and small businesses the power to require banks to provide safe and secure access to that information to trusted third parties so that these parties can use the latest technology to provide consumers the tools to make more informed choices as to how they spend their money.
Importantly, the regime has strict privacy and security protections and allows consumers to control what data is shared, with whom and for what purposes.
The improved competition and data-driven innovation from the new system will also help create new jobs and ultimately boost the economy. Better access to data will help make businesses more efficient with savings flowing through to consumers and small businesses.
The Consumer Data Right will be regulated by the Australian Competition and Consumer Commission and the Office of the Australian Information Commissioner, with a new Data Standards Body developing transfer and security standards.