Gives more power to consumers.
The Turnbull Government is helping customers get a better deal with the release of exposure draft legislation to introduce a Consumer Data Right. Treasurer Scott Morrison said the Bill is a game changer for Australians as it will empower customers to use their data for their own benefit.
Customers will determine which data is shared, on what terms and with whom and is a right for customers and not for those who wish to access or use a customer’s data, the minister said.
“It will arm Australians with the information they need to seek better deals on banking products and loans, with further sectors such as energy and telecommunications services to be added over time. No longer will Australians be left in the dark by banks and financial service providers,” he said.
The government is committed to ensuring that high levels of privacy protection and information security for customer data is embedded in the new regulatory framework. This Bill delivers enhanced protections, backed by well-resourced regulators with strong powers. Data recipients must be accredited as trustworthy to receive data pursuant to the Consumer Data Right, enabling customers to have justified confidence in the system.
The Australian Competition and Consumer Commission and Data Standards Body are developing rules and standards that will provide further protections for customers.
The recent Productivity Commission review on Competition in the Australian Financial System reported that the average Australian household could be saving up to $1000 per year on their home loan if they switched to another lender, but many choose not to or don’t know how. With over 4,000 different residential property loans on offer, customers struggle to determine which home loan is best for them.
Many customers need help in managing this complexity, in assessing, selecting and using those offerings. The Consumer Data Right will enable customers to get assistance and tailored support from third party service providers, by granting access to their data.
In the banking sector, where it is called Open Banking, the Consumer Data Right will mean customers can direct their information be shared, including information relating to deposit accounts, debit and credit cards, mortgages, personal and business loans and transaction accounts.
The exposure draft of the legislation and details on privacy protections built into the Consumer Data Right are available on the Treasury website.
The government is encouraging all interested parties to make a submission which is due by September 7, 2018.