The Government is consulting on its rollout of the Consumer Data Right (CDR) to various parts of the economy by the end of this decade.
Ahead of this, Treasury is consulting on its Strategic Assessment of sectors and datasets across the economy as the Government looks to industry for the building blocks of Australia’s CDR framework long-term. Feedback from the consultation will provide the basis for future acceleration of Australia’s CDR framework.
The consolidation of the entire commercial data history of a consumer should radically enhance the precision, accuracy, and effectiveness of the products and services they are matched with. With the rollout across the banking sector underway, electricity and telecommunications sectors are next. Long-term aspirations to roll out the consumer data right to financial advice are already in place with superannuation and insurance data also cited in Treasury’s paper.
The Government is looking through its Strategic Assessment to industry to look at the practical hooks preventing the rollout occurring – in which a seamless consumer experience is delivered. FSC Members are concerned to ensure, when fully implemented, the CDR puts power back in the hands of consumer and that appropriate guardrails are in place in respect of privacy and controls on an individual consumer’s data and where it goes.
For example, what should be the process if an institution amasses considerable amounts of data about a consumer to match them with the right product or service, but that transaction does not occur, should that institution be entitled to keep that data? Or should they be able to keep it for a limited purpose if at all?
The FSC’s Technology and Innovation Expert Group has begun some initial thinking on the design constraints Treasury should factor into its thinking regarding financial services from life insurance to financial advice. Members should contact This email address is being protected from spambots. You need JavaScript enabled to view it. for more information.
More information about Treasury’s Strategic Assessment is available here.
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