Assistant Treasurer Stephen Jones recently reaffirmed the Australian government’s commitment to the Consumer Data Right (CDR), a move welcomed by the mortgage and banking sectors.
Established in 2019, the CDR grants consumers greater control over their data, allowing secure sharing with accredited third parties like mortgage brokers. This initiative aims to boost competition, innovation, and consumer access to tailored financial products.
Despite challenges in its rollout, including data quality issues, complex regulations, and limited customer awareness, the CDR’s reset is seen as a pivotal step forward.
The Australian Banking Association (ABA) has voiced concerns and advocated for a delay. At the same time, the Mortgage & Finance Association of Australia (MFAA) and other industry leaders express strong support.
MFAA CEO Anja Pannek highlights recent progress in products specifically designed for brokers, emphasising the benefits of safer and more accessible data collection for home loan applications.
A significant change announced is the planned ban on screen scraping, a technique third-party services use to collect consumer data. Industry leaders like NextGen and the Australian Retail Credit Association (ARCA) support this transition, recognising CDR as a safer alternative. Additionally, the CDR is set to expand to non-bank lending data by 2026, promising more comprehensive financial insights for consumers.
The government also aims to streamline the consent process and reduce CDR costs by narrowing its scope. Industry players are encouraged to propose high-value use cases to drive adoption.
Despite some friction, the mortgage and banking sectors are committed to collaborating with the government to ensure a seamless transition and a more consumer-focused financial landscape in Australia.