In 2019 the Australian Government passed the Consumer Data Right (CDR) legislation. The purpose of this legislation is to give customers greater access to, and control of the data associated with the products and services they use. Australia’s banking sector will be the first application of the CDR, which is known as Open Banking, and will be followed by the energy and telecommunications sectors.
What is Open Banking?
How does Open Banking benefit the customer?
The aim of Open Banking is to increase competition, both between major banks, as well as across other financial institutions and accredited third parties. It is aimed at making it easier for you to compare and switch between products and services, of accredited Open Banking participants; giving you more control of who you share your data with.
When does Open Banking begin?
From early 2020, you’ll be able to securely share specific types of your banking data with other accredited third parties if you so choose. You’ll have full control of this data sharing. Initially you’ll only be able to share data attached to products such as your credit card, or deposit, transaction and savings accounts. Over time, the type of data you can choose to share will increase to include types like home, personal or business loan data.
Is Open Banking secure?
The safety and security of your information and privacy is our highest priority. Open Banking gives you full control of how you choose to share information. Data is only shared with accredited third parties should you authorise it. You can revoke your permission to share data at any time and ask for your data to be deleted.
All Open Banking participants that send and receive data must be accredited by the Australian Competition and Consumer Commission (ACCC) and the Australian Information Commissioner (OAIC). They have set strict accreditation criteria, as well as privacy and information security standards.
You’ll never need to give your NAB banking password to a third party. Should you choose to share data with another accredited Open Banking participant, a secure connection will be used to transmit your data to that organisation. Strict terms and conditions defined by the ACCC on how your data must be secured governs this connection.