The cumbersome practices of the home loan application process may be tested by the new "consumer data right," ACCC chair Rod Sims suggested yesterday.In May, the government confirmed the application of the consumer data right to banking, "where it will be known as 'Open Banking' and that the ACCC would have a new role in overseeing its implementation," Sims explained to the Australian Conference of Economists in Sydney."The consumer data right will enable customers to safely share their transaction, usage and product data with trusted service providers, if they choose to do so [and] we see this as a fundamental competition and consumer reform," Sim said.But, he asked, "what is the justification of such a broad ranging regulatory intervention and why isn't the market delivering these benefits absent intervention? As this audience well knows, markets usually work more efficiently when consumers are well informed about the price and quality of offers available to them, the costs consumers incur when switching between providers are small, and barriers to entry for new providers are low."Sims was blunt: "In mortgage markets, this is not the case.  "As we observed in our Residential Mortgages Prices Inquiry [released in March], it is often difficult and costly for borrowers to compare the offers of mortgage providers. "Discounts off standard variable interest rates are opaque. "Borrowers often have to lodge an application and provide substantial personal information in order to confirm the interest rate a mortgage provider is willing to offer," Sims said."This all amounts to high search costs for the market to work effectively. Consumer data rights are therefore intended to reduce the cost to borrowers of discovering and comparing offers."Sims declared himself an enthusiast for this widening of his engagement with the banking sector."To me, this is one of those cases where government intervention is totally justified and will be welcomed by consumers, as [banks] cannot be relied upon to make this data available themselves without the legislative push from government."It is envisaged that the consumer data right will be expanded, initially to energy and communications, and consumers will be able to benefit from access to their data across the entire economy."