Former NAB, CBA exec to oversee open banking at ACCC

The ACCC has established a new division to oversee the Consumer Data Right, including open banking

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NAB’s former payments chief Paul Franklin has joined the Australian Competition and Consumer Commission (ACCC) to lead a newly established created division dedicated to the Consumer Data Right (CDR).

Franklin joined NAB in 2017, leading the bank’s payments product team, including oversight of its participation in the New Payments Platform (NPP). Prior to that he held a string of senior roles at the Commonwealth Bank of Australia, including working as part of the NPP Design Working Group, and at Westpac.

Franklin left NAB in December ahead of joining the ACCC earlier this year. He is also the former deputy chair at the Australian Payments Network (AusPayNet). The ACCC said that Scott Gregson, the commission’s executive general manager, merger and authorisation review, will transition away from work on the CDR.

Open banking will be the first implementation of the CDR. In December, the ACCC announced it was pushing back the start date for open banking from February to July 2020. The ACCC is working on revised CDR rules to reflect the new timeline.

An update from the commission said that its build-out of the CDR register and accreditation application platform is “well progressed”. “The platform is being actively tested with the big four banks and initial data recipients and relevant security assessments are also being undertaken,” the ACCC CDR team said.

Under the CDR legislation, the ACCC is in charge of maintaining the register of accredited data recipients and data holders.

From 1 July this year, banks subject to the new regime will need to have the mechanisms in place to provide a range of data relating to credit and debit card, deposit account and accounts to accredited service providers when directed to do so. From 1 November, consumer data relating to mortgages and personal loans will be covered.

The government has said that the CDR will give consumers greater control over data relating to their use of a particular service. It is intended to make it easier to use third-party services to analyse their usage patterns and potentially find and move to a better deal. The telecommunications and energy sectors will be the next two industries covered by the CDR.

Under the CDR legislation, the ACCC draws up the rules setting out how the right will be implemented within a particular sector, while the Office of the Australian Information Commissioner (OAIC) will help oversee the privacy aspects of the new regime. For open banking the ACCC has worked with the CSIRO’s Data61 on developing API standards.

The ACCC is currently consulting on rules governing third-party service providers that collect or facilitate the collection of CDR data from the entities that hold the data, on behalf of accredited data recipients. The commission has previously flagged that it would developed rules supporting so-called intermediaries.

“The ACCC understands that there are a range of innovative business models that intend to operate in the CDR regime, including software as a service or platform as a service providers,” the ACCC noted in a December 2019 consultation paper.

“These business models include those that may assist in or facilitate the collection of CDR data and those that may offer ‘end-to-end’ services that collect and use CDR data.”

That ACCC consultation paper is also seeking input on expanding the CDR disclosure rules to potentially allow information to be transmitted to certain non-accredited third parties, such as a person’s lawyer or accountant.

Submissions are being accepted until 3 February.

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