22 July 2019
The announcement today by the Government of the introduction of legislation for the Consumer Data Right is an important step to making the Open Banking reforms a reality for Australian bank customers.
Open Banking will allow customers, at their request, to share their personal information with accredited institutions, including other banks, to allow them to find a better deal on their banking products. The Open Banking regime will begin next year for the four major banks, with other Australian banks to join the system following this.
Executive Director of Policy for the Australian Banking Association Christine Cupitt said the legislation was a critical step to ensure the reforms moved forward and ensured that the system was safe and secure for Australians to use when launched next year.
“Open Banking will be a win for customers, increasing competition and making it easier to get the best deal possible from their bank,” Ms Cupitt said.
“Giving customers greater access to their data will make it easier and simpler to shop around for a better deal on a credit card, followed by home loans and other banking products.
“Thorough testing of this regime is vitally important to the success of this reform and to ensure Australians trust and use it.
“Passing this legislation is an important step to setting up a safe and secure system,” she said.
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“Australian banks are certainly better equipped now than they were in the GFC. They’ve got 2 to 2.5 times the capital reserves put aside for a rainy day than they had in the GFC”
“The Australian Banking Association (ABA) welcomes the agreement reached today on the proposed safeguard mechanism reforms, given it paves the way for the passing of a critical piece of legislation for Australia.
“This is about engaging with the entire banking ecosystem in order to ensure the accessibility of the sector’s services are best serving our diverse community now, and into the future.”