Launched in July 2020 in Australia, the implementation of Consumer Data Right (CDR) to support Open Banking worldwide, has progressed according to the legislated schedule. Eventually, the aim is that all major and non-major authorised deposit-taking institutions (ADIs) will need to comply, sharing consumer data with individuals and accredited data recipients.
Unfortunately, converting legacy systems to comply with CDR has presented many significant challenges to financial institutions, the cost of execution being only one. After investing significant resources into recalibrating systems and processes to execute on the CDR, financial institutions must now pivot to prioritising strategies that commercialise open banking. This is a mindset change from the new requirements being regarded as a cost of technology, to an appreciation that this move could increase revenue, deliver new efficiencies to the market, and generate a significant return on investment if executed appropriately.
In this white paper, we discuss:
- The current state of CDR regulation in Australia
- CDR challenges
- CDR banking opportunities
- Retail Mortgages and Corporate Banking use cases
- Ideas how Fintechs can play a part in accelerating the banks’ CDR digitisation programs
