Australia’s open banking regime delayed

ACCC cites security, privacy in delaying roll out of open banking

Magnified view of chip card banking security technology

The launch of Australia’s open banking regime will be pushed back from February 2020 to July 2020, the Australian Competition and Consumer Commission (ACCC) has announced.

Australia’s major banks will now be required to make available credit and debit card, deposit account and transaction account data to authorised and accredited service providers from 1 July 2020. Consumers’ mortgage and personal loan data will be covered by the open banking rules from 1 November.

In its announcement, the ACCC cited the need for “additional implementation work and testing to be completed” and said that the delay would “better ensure necessary security and privacy protections operate effectively”.

The government in November 2017 announced it would legislate a new Consumer Data Right (CDR) in response to a Productivity Commission recommendation.

The CDR will allow a consumer to direct a service provider to transfer data relating to their use of a service to an accredited third party. The government has said it will make it easier for consumers to employ services that can help analyse whether they are better off switching providers.

The CDR is being rolled out sector by sector, with open banking the first implementation of the new system. Work on expanding the CDR to the energy and telco sectors is also underway.

Initially the open banking rules will apply to Australia’s ‘Big Four’: The Commonwealth Bank, Westpac, NAB and ANZ.

In September the ACCC revealed the 10 companies selected to help test the new open banking ecosystem.

The ACCC will issue new open banking rules in January that include the changed rollout timetable.

“The CDR is a complex but fundamental competition and consumer reform and we are committed to delivering it only after we are confident the system is resilient, user friendly and properly tested,” ACCC commissioner Sarah Court said in a statement released today.

“Robust privacy protection and information security are core features of the CDR and establishing appropriate regulatory settings and IT infrastructure cannot be rushed.”

Copyright © 2019 IDG Communications, Inc.

Bing’s AI chatbot came to work for me. I had to fire it.
Shop Tech Products at Amazon