Demand for and use for the Consumer Data Right is less than minimal, while costs are very high, data released by the Australian Banking Association shows.
Analysis by Accenture for the ABA reveals there is nothing all that much to the business of the Consumer Data Right.
The ABA findings that will unsettle fintech and other champions of the CDR and open banking, and also scorch the business models of a whole cottage industry that has grown up around the CDR.
Less than one per cent of bank customers are seeking to share their data, a broader ABA report on consumer banking matters yesterday, Bank On It, shows.
New CDR requests by bank customers by the end of 2023 amounted to only 0.4 per cent of all bank customers, data supplied by nine banks shows.
Customer data was provided to the ABA by three major banks and six mid-tier and international banks, and this data “has been scaled up using stable ratios to represent a population of 10 banks” the ABA said.
The ABA then questioned the costs, estimating the industry’s spend on CDR over six years at around $1.5 billion.
“The average historically incurred cost of CDR per customer remains high at around $3000 per customer” the ABA said.
The Consumer Data Right performance dashboard records that CDR queries number well into the hundreds of millions since the beginnings of the CDR in banking. Yielding little.