Latest open banking deadline hits today

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Latest open banking deadline hits today

The next key deadline in open banking arrives today. Major banks should now be able to enable data sharing for non-individuals, business partnerships and secondary users.

It may not be that simple, however, as many building societies and credit unions have struggled, apparently due to difficulties providing the necessary integrations via their core banking platforms. Many missed the latest July 1 deadline. More than three dozen authorised deposit-taking institutions (ADI's) were still non-compliant in August. 

While it has been fairly forgiving in the past, lately, the ACCC more recently has hinted it may need to become more aggressive about ensuring compliance.

Open banking is the first manifestation of the wider Consumer Data Right. First mooted in 2017 the major banks have been sharing product reference data since July 2019.

Last month The Commonwealth made amendments to the Consumer Data Right Rules that it said will support increased participation in the CDR regime.

According to the government the October amendments were designed to;

  • Provide new pathways for industry participation by allowing CDR participants that are accredited by the ACCC to sponsor other parties to become accredited or allow them to operate as their representatives. 
  • Empower consumers to share their data easily and securely with certain trusted professional advisers, including their accountant, tax agent, financial counsellor, financial adviser or mortgage broker.
  • Enable consumers to disclose limited data insights outside the CDR for a specific purpose if they choose, such as to verify their identity or bank account balance.
  • Simplify the data sharing process for consumers who use joint accounts by enabling each joint account holder to consent to share data on the account, while maintaining appropriate control and transparency for all account holders. The new joint account data sharing process is scheduled to commence on 1 July 2022 to allow an appropriate implementation period for data holders.

At the time, Jane Hume, Minister for Superannuation, Financial Services and the Digital Economy said, “The rules made today are an important step in supporting the development of a vibrant data economy that provides benefits to business and consumers. The Government is committed to supporting businesses and consumers to participate in the Consumer Data Right and will continue to ensure that the rules support that objective”. 

© Digital Nation

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