The government agreed to the Review recommendations, both for the framework of the overarching Consumer Data Right and for the application of the right to the Banking sector – with a phased implementation from July 2019, starting with the publication of product reference data by the big four banks. [...] This amendment: ▪ Set out the role, functions and powers of each of the Australian Competition and Consumer Commission (ACCC), Office of the Australian Information Commissioner (OAIC) and Data Standards Body (DSB) ▪ Outlined the overarching objectives and principles for the Consumer Data Right ▪ Created a power for the Treasurer to apply the Consumer Data Right to new sectors ▪ Enshrined a guarant. [...] leads CDR policy and program delivery, including development of rules and advice to Designation Government on next steps in the CDR Internally, within the Treasury, the Data Standards Body (DSB) is responsible for developing the standards that dictate the procedures for data sharing under the CDR. [...] Data Standards Body (DSB) Data Standards Advisory Established to oversee the development and maintenance of CDR data standards to Committee (DSAC) (within Treasury) develops technical standards, address the evolving needs of consumers, the Data Standards Advisory Committee Technical & Consumer consumer experience standards and guidelines, (DSAC) is composed of industry experts, consumer representa. [...] A legal entity that can receive a consumer’s data under the Consumer Data Right and use that data to provide the consumer with goods and services with the consumer’s consent.
Authors
- Pages
- 37
- Published in
- Australia
Table of Contents
- 00_INTRO 1
- Slide 1 1
- Slide 2 2
- Slide 3: Executive summary 3
- 01_CONTEXT 4
- Slide 4 4
- Slide 5: The Consumer Data Right (CDR) is a legislative, regulatory, and standards framework established to give consumers greater ownership over their data 5
- Slide 6: Fundamentally, CDR seeks to enhance the confidence, desire, and ease for consumers to share their data, stimulating greater innovation, competition, and market efficiency 6
- Slide 7: CDR governance broadly consists of four layers that work together to evolve and enforce the CDR in line with policy objectives 7
- 02_ADOPTION 8
- Slide 8 8
- Slide 9: Starting with a zero base in 2020, CDR has not resulted in impactful arrangement volumes and already is showing early signs of decelerating growth 9
- Slide 10: The profile of arrangements across the years also shows lapsing/revocations are significant, either due to one-off short-term use cases (e.g. digital lending) or limited customer value propositions 10
- Slide 11: The diversity of CDR usage by active customers is low, contributing to low engagement 11
- Slide 12: The profile of CDR engagement split by Majors and Mid-Tiers is reflective of their underlying customer profiles and retail bank market dynamics 12
- Slide 13: Uptake of CDR amongst bank customers remains insignificant, in large part due to limited stickiness of arrangements 13
- Slide 14: The slowing of ADR growth in the market reflects a low level of consumer demand and ADR propositions that are not sufficiency appealing for consumers 14
- Slide 15: Despite new entrants, the ADR ecosystem remains highly concentrated with the top 5 players making up ~75% of arrangements 15
- Slide 16: Despite attempts by ADRs to innovate and grow the market, they are struggling to uncover compelling use cases and gain traction with consumers 16
- 03_VALUE ASSESSMENT & IMPLEMENTATION COST 17
- Slide 17 17
- Slide 18: The banking industry is estimated to have spent ~$1.5b on CDR to date, with a relatively high proportion of expenditure incurred by Mid-Tier banks 18
- Slide 19: The high level of compliance spend required by the banking industry has severely limited capacity for investment into ADR functionality – particularly for Mid-Tier banks 19
- Slide 20: Despite a decline in the cost of CDR per customer over time, it remains economically unsustainable 20
- 04_DATA HOLDER PERSPECTIVES 21
- Slide 21 21
- Slide 22: Australian banks recognise the CDR’s potential, however, stakeholder interviews surfaced issues across design and implementation that have inhibited success 22
- Slide 23: In design, there was an insufficient focus on cost and benefits for the system – with the resulting scope, standards, and obligations being too extensive and prescriptive 23
- Slide 24: Interpreting and aligning on the numerous technical and data standards, along with scheme changes, has resulted in additional costs and re-work – creating significant compliance complexity 24
- Slide 25: The CDR objectives have largely not been achieved, and in some cases have had unintended consequences – namely adverse competition outcomes from the disproportionate impact on Mid-Tier banks 25
- Slide 26: CDR implementation has driven significant opportunity cost. While there were some indirect benefits, prescriptiveness and sequencing requirements limited these 26
- 05_INTERNATIONAL INSIGHTS 27
- Slide 27 27
- Slide 28: For insights and lessons learned from global open data regimes, a diverse set of recent and contemporary implementations were examined 28
- Slide 29: Selected data sharing regimes have been assessed against several factors – including consumer receptiveness, nature of the supporting ecosystem, and depth/breadth of the policy environment 29
- Slide 30: A set of criteria with typical characteristics for the key factors influencing consumer data-sharing adoption was established for evaluation 30
- Slide 31: Analysis suggests that pre-existing related infrastructure (e.g. digital identity), market-driven implementation and consumer receptiveness (e.g. through trust, appealing propositions) are key drivers to uptake 31
- Slide 32: Jurisdictions with higher adoption rates (Singapore, India) exhibit a high score in at least one of these categories (consumer receptiveness and enabling ecosystem), with moderate policy depth/breadth 32
- 06_FUTURE OPTIONS 33
- Slide 33 33
- Slide 34: The CDR has had some limited success in building the infrastructure to support data sharing. However, there is no indication that other objectives will be met 34
- Slide 35 35
- Slide 36: Key CDR and Report Terms 36
- Slide 37: CDR Use Case Category Definitions 37
