Non-bank lending providers are being roped into the Consumer Data Right.
Stephen Jones, the Assistant Treasurer and Minister for Financial Services yesterday announced a series of reforms around the CDR, of which the biggest is that the period CDR participants must hold and share data will be sliced from 7 years to 2 years.
The Labor government is also “exploring how the existing data sharing framework can better support high priority use cases such as consumer finance and lending, small business accounting services and energy switching” Jones said.
In relation to non-bank lending, and commencing from mid-2026, yesterday’s
announced changes:
• Expand the CDR to include non-bank lending products.
• Remove the requirement for data holders to share consumer or product data for niche products such as asset finance, consumer leases, reverse mortgages, margin loans and foreign currency amounts.
• Reduce the period of data to be held and shared from 7 years to 2 years,
• And ensure Buy Now, Pay Later products are covered by data sharing obligations.
“These changes ensure the CDR targets priority use cases, such as consumer finance and lending, without imposing unnecessary costs and regulatory burden on smaller lenders” Jones said.
“The government’s changes will open opportunities for consumers to use the CDR to find the best deals on more lending products. It will also address the cost burden of the CDR on the financial sector.”