FinTech Australia, Mastercard and OpenFinance ANZ have put the spotlight on the pace and rollout of Consumer Data Right (CDR) related services in Australia.
The Australian government launched the Consumer Data Right (CDR) initiative to provide consumers with greater access to and control over their data. It aims to foster more competition and innovation across various service sectors, starting with banking, energy and telecommunications.
The fifth edition of the Open Banking Ecosystem Map and Report provides an update on the CDR ecosystem just before the May Federal Budget reviews the federal funding for the CDR rollout. The Federal Government allocated $88.8million over two years in the 2023 Federal Budget towards expanding the CDR into non-banking areas
According to the latest report, there has been a notable uptick in engagement, with data recipients now making up 66 per cent of the ecosystem, a rise from 47 per cent in December 2022. There’s also been a 15.52 per cent growth in CDR representatives since May 2024, and the variety of use cases has swelled to 197, touching a broad array of industries.
Changes to regulations have made it easier for consumers to give consent and for participants to manage their operations, effectively halving the time needed for data holders to address implementation gaps since December 2022. These improvements reflect the continuous tweaks to the regulatory frameworks that support the growth of the CDR.
Reforms
The report also highlights the need to keep a close eye on these reforms, especially as the funding is due to expire in June 2025.It points out that keeping up the momentum is vital for the CDR’s ongoing success and its practical benefits for consumers.
Adoption of open banking principles in New Zealand represents a significant expansion of these ideas across the region. Key moves like legislative consultations and the setting up of Payment Initiation API standards by major banks mark important milestones.
Key regulatory changes are on the horizon, and ongoing government support is seen as crucial with decisions in the upcoming Federal Budget likely to impact the future of open banking in Australia as well as beyond.
