The Australian Government has released its Report into Open Banking (Report), which aims to provide guidance on the government's approach to providing consumers with greater access to and control over their data in the banking sector. The Report provides recommendations on the most appropriate model for establishing Open Banking in Australia.
Open Banking will seek to give consumers the right to safely share their data with other banks, institutions and FinTechs. Consumers will be able to change banks and institutions with more ease, removing the 'hassle' impediment that causes many customers to remain with their current provider. It is intended that granting third-party access to customer data will also facilitate greater competition, enabling providers to offer competitive deals and products. Consumers will need to provide their consent before third-party access to data is granted.
The Open Banking report makes recommendations on:
- the regulatory framework to support Open Banking
- the types of data that should be shared and with whom
- the safeguards needed to develop confidence in data sharing
- how data should be transferred
- how Open Banking should be implemented
Open Banking will form an aspect of the Consumer Data Right in Australia, which provides a more general right to data access across various sectors. This follows a recommendation by the Productivity Commission's Data Availability and Use Inquiry. The government announced that the Consumer Data Right will be implemented on a sector-by-sector basis, starting with the banking, energy and telecommunications sectors. For further information, please see our June 2017 edition of LegalBytes here.
The consultation period will be open until 23 March 2018. Details on how to make a submission can be found here.
The full report can be found here.