The new consumer data right and the open banking regime

  • The main aim of consumer data right (CDR) is to allow consumers to switch service providers and services in an easier way to increase competition.
  • CDR will be immediately targeted at the banking sector, with the energy and telecommunications sectors to follow.
  • The Privacy safeguards are consistent with the Australian Privacy Principles.


The CDR aims to provide consumers with rights to direct a business to transfer data on the consumer to a third party in a useable, machine readable form as well as to provide product data to facilitate an economy wide consumer directed data transfer system and reduce barriers to change of suppliers, thereby increasing consumer rights and competition.

The main aim is to allow consumers to switch service providers and services (for example bank accounts or energy providers) in an easy way without any of the friction cost involved to date. For example, automatic bill paying and direct debiting arrangements make it cumbersome for the average consumer to switch bank accounts. That has led to a sticky customer relationship and reduced competition and innovation.

The CDR will require new thinking from those in designated services and likely lead to innovative disaggregated intermediaries, especially on app-based architecture in an ever deepening IoT environment.

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