It’s been a massive 2023 for Open Banking, or “Consumer Data Right” (CDR) in Australia.
We’ve seen a huge increase in demand from businesses and consumers alike for more secure and reliable data sources – a.k.a. CDR. The government has proven its commitment to making CDR reach its full potential by focusing on existing scope rather than rushing expansions into further industries. This has meant lots of working with industry to assess what’s most important to make Open Banking, Open Non-Bank Lending and Open Energy work.
Looking ahead to 2024, there are several major developments that will accelerate the mass adoption of CDR:
Game-changing business data rules 🏬:
New rules allowing businesses to share their data with any third party through an accredited data recipient, became effective on 28 Nov. This means the CDR is more accessible than ever, and we anticipate a significant shift in the B2B space towards this more secure and reliable data source. Expect to see CDR starting to become the norm in industries like accounting, wealth management and ERP providers.
Phasing out of screen scraping ⛔:
Recent consultations have highlighted the government’s desire to minimise consumer risk by banning screen scraping. Timelines, dependencies and specifics are being debated but it’s clear that all roads will eventually lead to the CDR. We’ve seen a massive uptick in businesses proactively future-proofing their offerings by adopting CDR now, and expect this to accelerate in 2024.
Major improvements to CDR Rules and CX Specifications 📱:
A number of consultations were run in recent months to improve the CDR, and collectively they will have a significant impact on the accessibility and seamlessness of the CDR experience. These include a simplification of the CX requirements which could cut the number of clicks in a consent process in half. Proposed changes also mean banks won’t be able to force businesses to fill in paper forms before allowing an individual to grant consent to share data on behalf of that business. This has been a real frustration for businesses looking to adopt CDR, so will enormously improve the CDR experience once implemented.
Non-Bank Lending (NBL) to join the CDR 🏦:
As the rules and data specifications are still being finalised for this new sector to join the scope of the CDR, 2024 will be a significant year for these lenders to begin their implementations. We will start to see the first NBL data towards the end of 2024, with most of it coming through in 2025.
We are so grateful for all our customers who have trusted us with their Open Banking journey this year, and we can’t wait to help you benefit from all these exciting developments in 2024.
