Open banking enters a new phase as big banks grumble over cost and uptake
Progress is slower than many hoped, but critical stages of the rollout of Australia's Consumer Data Regime are being passed. But major banks have ramped up complaints.
The Consumer Data Right (CDR) is slowly gaining traction despite a lobbying campaign by major banks arguing it is costly and useless.
Speaking at FinTech Australia’s CDR Summit, KWM’s Scott Farrell, the architect of the government's four-year-old scheme, expressed optimism that the major steps are in place for the CDR — which incorporates what is called “open banking” — to start delivering benefits.
“Is the CDR performing at that level now? Not yet,” he said. But Farrell said there were some key dimensions to the next phase of the CDR's use, noting that economies similar to Australia are already implementing them.
“The good thing is a lot of the groundwork to achieve them is already done,” he said, adding these are “exciting times” for CDR. “Although it is now operating, it is not yet performing, and it needs our further work to develop to the next level.”
