Open banking delayed again

  • By AB+F Editorial

Open banking has been delayed, with the competition watchdog planning to introduce the legislation in July instead of the planned February deadline. 

The ACCC  said it had formed the view that this updated timeline for these aspects of the consumer data right reforms will allow additional implementation work and testing to be completed and better ensure necessary security and privacy protections operate effectively.

“The CDR is a complex but fundamental competition and consumer reform and we are committed to delivering it only after we are confident the system is resilient, user friendly and properly tested,” ACCC commissioner Sarah Court said.

“Robust privacy protection and information security are core features of the CDR and establishing appropriate regulatory settings and IT infrastructure cannot be rushed.”

The ACCC will make the CDR Rules in January 2020 that reflect this adjustment to the timetable, and will conduct further consultation regarding any consequential changes to other phases of the CDR.

"This isn't the news we wanted to hear right before Christmas. However, its unsurprising given some of our members expressed doubts that the major banks would have their data formatted and ready in time for the policy launch in February 2020,” FinTech Australia CEO Rebecca Schot-Guppy said. 

“We understand and appreciate the importance of testing the CDR system to ensure that it is robust and resilient. 

“However, in light of the extended timeline, we will suggest additional fintech businesses be allowed to test to CDR to hone their offerings ahead of its launch in July 2020. 

“This would ensure that as soon as the CDR is online, consumers can take full advantage of the system and despite the delays, its impact is realised as soon as possible.”

Christmas seems to be the period to announce open banking delays.

In 2018, the government quietly delayed the implementation of open banking with Treasurer Frydenberg announcing the launch of a pilot program in July 2019.