The new regulations will give banking customers greater access to the data that their banks hold on them and the ability to direct that data to accredited service providers of their choice.
The new rules are due to come into force from July 2019. They may further squeeze the banks’ margins which are already expected to come under pressure as banks review lending practices after a spate of scandals, slowing credit growth.
Australia’s major lenders include Australia and New Zealand Banking Group, Commonwealth Bank of Australia, Westpac Banking, and National Australia Bank.
The new rules by the Australian Liberal-National coalition government come amid widespread outcry against the sector after the enquiry, and ahead of an election expected next year.
All major banks will need to make data available on credit and debit card, deposit and transaction accounts by July 1, 2019, and mortgages by February 1, 2020.
Remaining banks will be required to make the data available 12 months after the major banks. The data arm of Australia’s science body, the CSIRO, will act as a standards setting organisation, in collaboration with industry, fintechs, consumer and privacy groups.
The data rights will then be applied to Australia’s energy and telecommunications sectors to give consumers better choice in their energy, internet and telephone contracts.
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