FinTech Australia backs proposed CDR-dedicated agency

  • By Christine St Anne

FinTech Australia has backed a proposal to set up a new federal group to drive the consumer data right adding that the measure is best practice and consistent with global approaches.

On Wednesday, the Select Committee on Financial Technology and Regulatory Technology released its report proposing a number of recommendations.

The committee recommends that the Council of Financial Regulators (CFR) be given a competition mandate as well as a new body to roll out the CDR.

“We urge the government to strongly consider the recommendation to introduce a new body to govern the rollout of this policy,” FinTech Australia CEO Rebecca Schott-Guppy said.

“This is a best practice approach we have seen successfully implemented in both Singapore and the UK.

Schott- Guppy said that the fintech industry is also eager to see the ACCC speed up its investigation into intermediary access into the CDR, as recommended by the committee.

“We have consistently argued the intermediary approach is the best way to ensure widespread adoption and the best consumer outcomes from the CDR policy.”

The need for an independent conductor has been called for by parts of the industry as a way to drive a more coordinated approach to open banking.

The association’s CEO also backed the committee’s recommendation to run an advertising campaign to boost awareness of the CDR.

“Again, timing will be key here, as we need to ensure there are adequate effective services in place for the messaging around the promises further competition brought about by the CDR to truly sink in,” she said.

No ban on screen scraping

A parliamentary inquiry has found no reason to ban screen-scraping, a practice the major banks would like to see cease.

Schott-Guppy backs the position but firmly believes a a robust accessible CDR regime will render this practice obsolete over time.