The Consumer Data Right has been billed as a revolutionary new way for Australian businesses and customers to share data. Over two parts, smrtr’s co-founder and CTO Boris Guennewig looks at how it is changing how consumers and businesses use data.
In 2019, the Federal Government moved to pass the Consumer Data Right into law following a Review into Open Banking in Australia. At the time, the new legislation was billed as a way to give consumers greater ability to use their data as part of a value exchange and more control over who holds their data.
Almost two years on and it’s worth looking at how the Consumer Data Right and Open Banking has changed life for businesses and customers in Australia.
There are now 12 accredited data recipients under the Consumer Data Right, including all ‘big four’ banks in Australia and data companies such as Yodlee and illion. Customers of these banks can now request for their data – relating to deposit and transaction accounts and credit and debit cards – to be shared with accredited data recipients. Although the Open Banking regime currently focuses on the financial services industry, energy and telecommunications will soon join the program.
Under the Consumer Data Right, data can be shared within two minutes, with individuals (who must be over 18) asked to give consent, verify their identity, confirm data and then share the data.
For consumers, this offers clear benefits. More access to data means it is easier to find better deals and easily move providers while holding on to valuable data. While a customer might have traditionally favoured signing up for a loan or a credit card through their everyday bank – as it already has all of their transaction data readily available – with the Consumer Data Right, they can easily shop around for better products and can have their data easily shared.
A recent Deloitte study into Open Banking found that better value, dissatisfaction with the old bank, better features and more convenience were the most common factors when it comes to switching services. It also found that there is a perception that switching is harder than it actually is, with 39 percent of people that have switched mortgages describing the process as difficult or very difficult.
And while there has been limited uptake thus far, there will be increased opportunity for consumers to take advantage of the new rules as more companies jump on board. A financial management app, such as Mint and Spendee, could theoretically be updated with live data from a bank to help the customer make better informed decisions around how they spend their money.
There is no doubt that the open banking revolution provides clear benefits for consumers. However, it does rely on a sense of ‘data literacy’ from the public, which is not always present. Gartner defines data literacy as the ability to read, write and communicate data in context. However, the Deloitte study listed a “lack of financial and data literacy” in Australia as a key impediment to the overall success of open banking. Without data literacy (and education to promote it), the potential of open banking might remain unrealised.
Should tech giants be given access?
Given these benefits, the government is looking to extend these Open Banking principles to other industries. There was some uproar recently, however, when it was suggested that social media companies such as Facebook could apply to become accredited data recipients under the CDR scheme. Australian Information and Privacy Commissioner Angelene Falk shared her concern around this possibility during a recent Senate Committee. “I think because of the rich data holdings that are held by some of the social media platforms, care would need to be taken to ensure that individuals understand what they’re consenting to if their Consumer Data Right information were to be combined with that [which is] perhaps is on their social media profile,” she said.
And while there are questions over whether tech giants should be included in the open data movement, customers definitely stand to benefit if more industries take part and more data can be shared.
Please login with linkedin to commentconsumer data right
With Google abolishing third-party cookies and Apple continuing to push privacy-first solutions, marketers are on the lookout for new ways to reach engaged customers, while remaining compliant with rules and regulations. To help these marketers, Australian data commercialisation company smrtr has recently released a new whitepaper Through the Looking Glass: The Rise of Hypothesis-based Marketing. The whitepaper looks […]
We’ve dished out plenty of reminders, but believe us when we say that NOW is the time to submit your entry for B&T’s Women in Media Awards 2021, presented by Are Media. On-time entries for this year’s Women in Media Awards close TODAY (Monday 21 June at 5pm AEST). And, while you can submit entries after this date for […]
A recent report by reviews.org has found that 46 per cent of Australians say they are addicted to their phones. Reviews.org also found that Australians spend 17 years of their life, and an average of five hours a day, staring at their phones. 1,000 Australians were interviewed for the report, which found some startling insights […]
Wales has proven itself the surprise package of EURO 2020, advancing to the final 16 over the weekend over more fancied rivals. It was the team’s 2-0 win over Turkey last Thursday that caught everyone’s attention and gave the Welsh enough for-and-against points to advance through to the semis. Welsh TV station S4C also got […]
celebrity chef Manu Feildel, best known for hosting My Kitchen Rules, will see his contract with Seven end this month. My Kitchen Rules, initially a ratings juggernaut for Seven, ended in 2020. Despite persistent rumours that the show would make a comeback in 2022, in a May interview with TV BlackBox, Seven’s director of programming Angus […]
Zurich has been co-principal partner of Melbourne Football Club since 2018 and the sponsorship arrangement broadened in 2020 when Zurich also became Co-Principal Partner of the club’s AFLW team. CEO of Zurich life & investments, Justin Delaney, expressed his excitement at being able to continue the successful partnership. “We’re thrilled to extend our partnership with […]
ARN and The New York Times have reached an agreement for ARN to become the advertising sales representative for The New York Times’s podcast portfolio in Australia. The deal will enable Australian brands to connect with Australian listeners to The New York Times’s most popular podcasts, such as The Daily, Serial and This American Life, […]
Cost continues to hold considerable influence on brand loyalty, yet emotional connections and ethical values are also becoming key loyalty drivers, according to new consumer research commissioned by Emarsys. Emarsys has launched its first annual Loyalty Index which seeks to understand whether ‘true’ loyalty still exists and what it looks like today. The company surveyed over […]
Nine dominated Sunday night, with the launch of Australian Ninja Warrior netting 795,000 viewers as per OzTAM’s metro data. It is the program’s fifth season, showing the Australian public’s apparently unwavering passion for watching incredibly fit people fall off tall objects. The top watched program was Nine News which had 1,064,000 viewers, as compared to Seven […]
Verizon Media’s talent program has come to an end for the third year, closing with a hybrid pitch-off event for Musicians Making A Difference (MMAD). The Verizon Media Academy class of 2021, made up of 44 emerging leaders from across Australia and New Zealand media, advertising and marketing industry, were given just one hour to […]
Social purpose organisation UnLtd’s Big Games competition has raised a combined $85,000 for children and young people at risk. Running over five weeks, the competition involved 32 teams from across the advertising, marketing and media industries battling it out virtually for a chance to qualify for the Rocket League final. The tournament culminated in a […]
Stan has announced that the Stan Original Film Transfusion commenced filming in Sydney earlier this week and will premiere on Stan in 2022. Transfusion is a taut, muscular thriller starring Sam Worthington (Avatar) as Ryan Logan, a former Special Forces operative, who is battling to cope with life after the loss of his wife and is thrust […]
According to a decade of data collected by iStock, Australian brands turned to imagery depicting outdated gender stereotypes during the pandemic. Tracking the keyword ‘women’, iStock by Getty Images found that in 2020, ANZ brands and businesses reverted to gender stereotypes. Images of mothers home-schooling were used at almost twice the rate of images of […]
Schwartz Media is congratulating Maddison Connaughton on her three years as editor of The Saturday Paper. Connaughton has decided to finish up her editorship this month. “It’s been an honour to edit the paper,” Connaughton said. “The Saturday Paper is one of the brightest voices in Australian media and I have been happy to see […]
Research from EdBbirdie using Spotify data has identified the most popular songs to study to. After analysing thousands of studying and homework playlists on Spotify, American singer Olivia Rodrigo’s ‘drivers license’ came out as top song to study to. It featured on 48 study playlists, while other top songs included ‘Ophelia’ by The Lumineers, ‘Falling’ […]