In January 2022, the previous Liberal government initially proposed the expansion of the Consumer Data Right (CDR) to encompass non-bank lending. After two months, a consultation process was launched.
The government's objective at the time was to shift the focus from open banking to "open finance." The aim was to provide consumers with a more comprehensive overview of their financial situation by leveraging existing data across different sectors.
In November 2022, the non-bank lending sector was officially designated as subject to the CDR. This designation aimed to promote better-informed consumer engagement with both banks and non-bank lenders, ultimately leading to improved financial outcomes for individuals and businesses.
Taking into consideration stakeholder feedback obtained during a subsequent consultation period running from December 2022 to January 2023, amendments were developed.
The exposure draft explanatory material emphasized the policy intention to maintain regulatory consistency between the banking and non-bank lending sectors. Consequently, Schedule 3 to the CDR Rules (Schedule 3) was selected as the means to include non-bank lenders in the CDR.
The newly proposed rules applicable to non-bank lenders under Schedule 3 include:
- Establishing eligibility requirements for consumers making CDR data requests.
- Specifying the products and data sets within the scope that should or must be provided upon request.