Consumer Data Right

The first iteration of the CDR in Australia – a limited pilot involving the four majors – went live on 1 July 2019.

 

The Consumer Data Right (CDR) legislation was passed by Parliament on 1 August 2019.


Given the inevitability of the CDR, the question ADI Boards should be asking is not whether to adopt the CDR, but how to make the most of it. In this context,. Gen Advisory has observed several compelling CDR use cases which we believe would benefit any ADI which adopts them.

At a Glance

Critical Dates

Our Analysis

What Is It
  • Under Open Banking, customers will be given the right to instruct their existing bank to share their data with other banks and accredited FinTechs.

  • Open Banking is aimed at giving customers more choice, control convenience, and confidence

What ADIs need to do

to be ready for the CDR

How we can help ADIs

implement the CDR

The Future
  • After banking, the CDR will be extended to other sectors such as telecommunications and energy.

  • In Gen Advisory’s view, Open Banking will significantly level the competitive playing field between the majors, non-majors and alternative service providers.

Key Issues
  • API development.

  • Customer-centricity.

  • Value proposition & strategy formulation.

  • Use cases.

  • Cyber-security and resilience. 

  • Privacy policies.

  • Data analytics.

  • Risk-based pricing.

  • Partnerships.

  • Eco-system.

Opportunities
  • Existing ADIs and neo-banks could expand and enhance their native offerings. 

  • Increase appeal to existing and prospective customers. 

  • New value propositions.

  • New revenue streams.

Threats
  • Enables competitors to tap into an ADI's data and then offer competing products/services.

  • Note however that FinTechs are currently already doing this through a process known as screenscraping.

  • At a minimum, ADIs need to develop a sufficiently robust application programming interface (API) in order to meet their data-sharing obligations under Open Banking. 

  • More importantly, ADI Boards need to assess broader factors such as: customer-retention strategies; product and service offerings; cyber-security and resilience; privacy policies; and data analytics, among others.

  • Provide strategic advice to ADI Boards on Open Banking requirements, use cases and opportunities vs threats. 

  • Deliver bespoke research on a specific Open Banking-related area of interest.

  • Deliver bespoke training on Open Banking.

  • Manage and execute, on an ADI’s behalf, an end-to- end project on Open Banking.

  • Conduct due diligence on prospective Open Banking solutions providers.

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Contact Us

+61-2-8088 0744

Head Office

Level 10, 420 George Street

Sydney, NSW 2000

AUSTRALIA

FinTech Hub

Stone & Chalk Hub

Leve 4, 11 York Street

Sydney, NSW 2000

AUSTRALIA

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