Basiq Insights

Open Banking CDR

The latest update to CDR Rules: ‘Sponsoring’ a more inclusive Open Banking Ecosystem

The Australian Government has just taken a big step forward in facilitating a more inclusive Open Banking ecosystem by formalising Version 3 of the CDR rules to include a ‘Sponsorship’ model. This is great news for us and our customers and we detail some key wins below.

What is CDR?

In Australia, Open Banking is being facilitated under Consumer Data Right (CDR) legislation. The CDR mandates the opening up of consumer data to power data driven financial services that let consumers access more convenient, cheaper and innovative solutions to manage their money. The Australian Government has just taken a big step forward in facilitating a more inclusive Open Banking ecosystem by formalising a Sponsorship model under the CDR. Needless to say, this is great news for our customers and businesses, who can now access CDR data via our single API, without the need for full accreditation.

Back in June, Treasury and the ACCC opened a draft version of the CDR rules for industry feedback. Much of the feedback from Basiq and the fintech community focused on how complex rules and a resource-intensive path to participation would handicap Open Banking’s rollout. Both Treasury and the ACCC have been quick to take into account and formalise some of the feedback provided in the new CDR rules.

Sponsorship options for our customers

For Basiq, the new rules mean that we can provide our customers with both CDR and non-CDR data via a single unified API, without needing to be an unrestricted Accredited Data Recipient (ADR). Specifically, we will be able to act as a Sponsor to multiple Affiliates (our customers) and provide CDR data alongside enhanced services such as merchant identification, transaction categorisation and Consumer Insights from 1st Feb 2022. Of course if you have your own ADR status you are not restricted by that date.

Another win worth mentioning is the amendment of CDR rules for UX and joint accounts. Sharing of data will now be on by default on the source account which will greatly improve the consumer experience when consenting to sharing data from a shared account.

What Basiq provides as your sponsor

For our customers, Basiq will provide facilitation of the consent process, registration, Data Holder selection and the consent flow. As always, we will store and regularly refresh that data in our platform and overlay the required governance so it is ready for our affiliates to consume whenever they wish to have an updated view of their consumers. We will also enable management of ongoing consent with the consumer.

We will assist our affiliates with becoming an affiliate data recipient and also enable them to:

  • Access appropriate assistance or training on technical and compliance matters
  • Understanding of the shared liability model
  • Understanding compliance with dispute resolution obligations, the privacy safeguards and consent rules.
  • Understanding their use and disclosure of CDR data they receive, and management of CDR data in accordance with the obligations under the Act and rules.
  • Their conduct when using or disclosing CDR data to provide innovative goods and services

In summary, the updated rules help us support more customers and businesses in making access to CDR data as simple and frictionless as possible, facilitating innovation and driving consumer benefit.

To learn more about how Basiq can support your Open Banking Transition, get in touch with our team and download our free Open Banking Transition guide.