Whatever consumer benefits and industry changes will flow from Australia’s adoption of open banking, via the consumer data right; they will not come quickly.
A large number of banking institutions have applied for exemptions from the operation of the scheme.
The ACCC has issued exemptions from provisions of the consumer data right regime to 23 institutions since June last year. Most of those exemptions are still in force.
It continues to grant them. Last week, Newcastle Permanent Building Society was granted a delay to the commencement date for consumer data sharing for all products until June next year. The scheduled commencement date for some of the data is July 1.
Among those granted exemptions are Commonwealth Bank, NAB, Westpac, Macquarie Credit Union, Bendigo and Adelaide Bank (in respect of its subsidiaries), Auswide and Teachers Mutual Bank.
Some of the exemptions cover specific products. NAB has been allowed to defer consumer data sharing obligations for its foreign currency accounts until September.
Other exemptions cover all an institution’s activity. Last month, Bank of China was allowed to push phase one consumer data sharing out from the scheduled July commencement date until November.
In addition, the ACCC has agreed to a “rectification schedule” with each of the Big Four banks to cover a number of “outstanding deliverables”. For example, CBA customers are not yet able to share direct debit data for home loan and personal loan repayments. NAB is not able to share data from closed accounts.
There is a widespread problem with providing access to joint account data.
The next key date in the CDR rollout schedule is July 1, when non-major ADIs commence phase one consumer data sharing. From that date consumers or their authorised data recipients will be able to get access to their data covering savings accounts, cheque accounts, transaction and debit card accounts, GST or tax accounts, personal credit and charge card accounts and business credit and charge accounts.
Non-major ADIs will also have to have all the product reference data available from that date.
Major ADIs completed phase three of consumer data sharing in February, which means consumer data for all their products should be available.