Australia’s CDR Regime Must Ensure Competition is Improved Before SMEs Commit Resources

This post was originally published on The FinTech Times

We’ve heard many times before data is the most valuable thing organisations can obtain, and consumers can giveaway. As a result, the Australian Banking Association (ABA) introduced the Consumer Data Right (CDR) regime in July 2020 to give consumers greater control over their data. Reviewing the regime four years later, ABA commissioned Accenture to unveil how Australians are using it.

The CDR was rolled out in stages: initially to customers of major banks in 2020, then to customers of other banks in 2021. Since then, Accenture found that at the end of 2023, only 0.31 per cent of bank customers were using CDR. Additionally, more than 50 per cent of data-sharing arrangements had been discontinued or allowed to lapse throughout the year.

The banking industry has invested around $1.5billion into consumer data rights since 2018, with significant government support on top of this. However, contrary to its intent, the CDR is negatively impacting competition in the sector as mid-tier and regional banks incur disproportionately higher compliance costs compared to major banks.

ABA CEO, Anna Bligh said the banking industry has worked in partnership with government to roll-out CDR and has dedicated considerable resources into building data sharing systems.

“Australian banks have invested heavily to secure

Read the rest of this post, which was originally published on The FinTech Times.

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