Open Finance, a precursor to the Consumer Data Right began as a grassroots movement, campaigning for the legal rights of consumers and businesses to have control of their financial data and to be able to share this data with businesses of their choice digitally. It is part of a broader suite of Open Data initiatives, aimed at empowering consumers and small businesses to access, change and benefit from the data held about them by governments and institutions.
The initiative has gathered considerable momentum; various markets around the world are assessing, adopting or implementing laws and regulations to support it. In the EU, Canada, USA, Mexico, Brazil, India, Japan, Australia, Russia, New Zealand, South Korea, Singapore and many other significant markets are already at varying stages of review, policy development or implementation.
Despite these positive market developments, there is still much to understand about the versatility of Open Data, Open Finance and Data Portability to unlock economic potential and to improve the financial wellbeing of customers. In addition to exploring these opportunities, there are also risks and ethical considerations which will be critical factors for governments and regulators in developing policies and regulatory reform moving forward.
Research is needed to understand, measure and forecast the considerable impact of Data Portability on society and to shape public policy to ensure a Consumer Data Right creates positive disruption and the appropriate flows of capital allocation in markets, as well as to assess the techniques of regulation.
FDATA wishes to commend the efforts of the Australian Government in the continuing consultation with Industry and the release of the latest version of rules that will form Australia’s Consumer Data Right. Various groups have supported these works intending to design and develop a fit-for-purpose solution.
To arrive at the most suitable solution for Australia, working with such groups of expertise and enthusiasm, along with a comprehensive suite of participants, is essential. Globally, FDATA has provided comprehensive research and advisory to Federal Regulators and their Government’s alike. The design of the following sections provides targeted feedback in response to this final round of consultation. FDATA would be pleased to provide additional feedback or Global research to the Australian Government if required to progress the formalisation of CDR rules.
Australia has proven to be a world leader in legislative reform and its unique approach to adopting a Consumer Data Right. FDATA commends your attempts to learn from other jurisdictions and consider all options before deciding on the right path forward.