Open Banking Portal Launched by ACCC
(2 June 2020 – Australia) The Australian Competition and Consumer Commission (ACCC) has moved closer to launching open banking in Australia next month having released a platform allowing banks and fintechs to become accredited data recipients.
The regulator launched the Consumer Data Right (CDR) Register and Accreditation Application Platform (RAAP) on this week. The CDR in the banking industry, otherwise known as open banking, is still set for launch in July.
The platform will provide a portal where corporates can apply to be accredited to be able to transmit data under the CDR regime. It also represents the core IT infrastructure that will support the delivery of open banking, seeking to share consumer data between parties accredited by the ACCC. The application process will be initially open to the fintech community and is intended to give financial services customers greater flexibility to switch provider and allow new competitors to enter the market and challenge the incumbent Big Four banks comprising over 80 percent relationship share, and growing, for many product categories according to East & Partners research.
East & Partners research also reveals SME switching intentions have reached a record high for business banking products including transaction banking and credit, having traditionally banked in a holistic way with a single provider.
“The CDR will give businesses and consumers greater control over their personal information, giving them power to instruct businesses to provide access of their data to third parties” said Australian Federal Treasurer Josh Frydenberg in a joint statement with senator Jane Hume.
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