Open Banking - looking beyond data sharing
The Open Banking deadline is nearing for Data Holders, the major banks have already complied with product reference data, whereas non major ADIs including nonmajor banks, building societies and credit unions, are well set to comply with these requirements by Oct 1st, 2020.
While the compliance timelines for disclosure to accredited data recipients is still a few quarters away (phase-1 for major banks is
Oct 2020 and for non-major banks/ADIs/ building society/credit unions is July 2021), the financial institutions have also started to define their strategy around being a Data Recipient. We are seeing a varied set of approaches to the Open Banking Consumer
Data Right (CDR) compliance requirements.
While the smaller financial institutions have primarily focused on compliance aspects, the midlarge tier organisations have taken a strategic approach to prepare themselves for a new world, where the customer and banking data can be potentially accessible to all financial institutions based on customer consent.
While the immediate focus of CDR has been product, banking and consumer data from Financial Institutions, it is expected to be extended to other industries such as utilities. Additionally, the Australian Competition and Consumer Commission (ACCC) is also contemplating ‘write access’, which can open up transaction processing by Data Recipients post receiving customer consent.