Australia’s competition regulator has delayed the launch of the consumer data right (CDR) for the banking sector by five months, with key elements expected to go live in February now planned for July 2020.
Consumers will now have to wait until 1 July to be able to direct major banks to share their credit and debit card, deposit account and transaction data with select service providers after the Australian Competition and Consumer Commission decided it needed more time to work on and test elements of the CDR.
Mortgage and personal loan data will be able to be shared after 1 November next year.
The ACCC was handed the mandate to deliver the CDR by the federal government last year to give consumers the ability to direct telco, banking and energy companies to share their data with other institutions to give them greater visibility on special offers and more freedom to switch service providers.
ACCC commissioner Sarah Court said the change in the timeline was necessitated by the complexity of privacy and security arrangements in the finance sector.
“The CDR is a complex but fundamental competition and consumer reform and we are committed to delivering it only after we are confident the system is resilient, user friendly and properly tested,” Court said in a statement.
“Robust privacy protection and information security are core features of the CDR and establishing appropriate regulatory settings and IT infrastructure cannot be rushed.”
CDR Rules will be made available by the ACCC in January next year to reflect the adjustments, and further consultation will be undertaken regarding any changes to other phases of the CDR as a result.
The ACCC only named an initial group of 10 fintechs to test out the open banking component of CDR in late September, one of the key backbones to the regime.
The Big Four banks managed to secure significant concessions from the CDR scheme, with their related brands excluded from the initial implementation of CDR, including the likes of St George, Bankwest, UBank, and the Bank of Melbourne.
Australia’s energy sector will be the next to implement the CDR once the finance sector rollout has been completed, followed by the telcos.