Lending, credit and broking use cases leading Consumer Data Right (CDR) roll-out as industry leaders push for consumer adoption
The fourth edition of the Australian Open Banking Ecosystem Map and Report – prepared by FinTech Australia, supported by Mastercard, and in partnership with FinTech NZ, Payments NZ and Open Finance ANZ – reveals a growth in Open Banking use cases in Australia across lending, credit, and broking, as well as personal finance and payments.
Australia has entered the consumer adoption phase for the Consumer Data Right (CDR), which provides individuals and organisations with greater control over their data allowing them to securely share this data with trusted third parties.
The data, sourced from the Australian Competition and Consumer Commission’s (ACCC) Provider Register, shows that industry stakeholders are transitioning to Open Banking across the ecosystem, as there are now 135 CDR Representatives, an increase of 165% from December 2022, with 96 Data Holders now active participants. In addition, almost all consumer bank accounts (99.74%) are now connected to the ecosystem, setting Australia up for further consumer adoption of Open Banking technologie
Currently, 64% of the ecosystem consists of Data Recipients, organisations that can receive consumer data once consent has been provided. These recipients are responsible for the creation of data use-cases and promoting customer adoption. 89% of these Data Recipients use third-party intermediaries (including Outsourced Service Providers or “OSPs”) to access data via the CDR Register, highlighting the important role these specialist providers are playing in driving participation in the CDR ecosystem.
The report noted an increase in use cases from a diverse range of industries including climate and sustainability, health, philanthropy and hospitality, demonstrating significant growth and maturity of the Australian Open Banking ecosystem.
Rehan D'Almeida, CEO at FinTech Australia said “With use cases starting to emerge, the challenge now is to encourage the capture and sharing of data on uptake and usage in order to quantify the impact of the CDR.”
“Current cost of living challenges and higher interest rates make it more important than ever for us to see CDR enabled products in the hands of consumers at scale; helping them manage their finances, getting a better deal and saving them money. We expect the next 12 months will be a period of innovation and uptake as the ecosystem matures, with fintechs continuing to lead the way."
Brenton Charnley, Vice President and Head of Open Banking, Australasia at Mastercard added “Mastercard has been powering and protecting its global payments network for more than five decades, and Mastercard’s Open Banking technology allows consumers to use their financial data for their own benefit to access innovative, new and improved experiences. Mastercard recognises the potential of the Consumer Data Right (CDR) in Australia to significantly empower consumers with more choice and control over their financial data.”
“Mastercard looks forward to the government’s response to the current consultations that focus on screen scraping and improvements to consent and data quality. These reforms will support both consumer and business adoption.”
FinTech Australia will partner with FinTech NZ, Payments NZ to expand the report to the Aotearoa New Zealand market. Future Open Banking Ecosystem Maps will provide a regional look at adoption of the CDR.
About FinTech Australia
FinTech Australia is a national association for the Australian FinTech Startup community. Our vision is to make Australia the leading market for FinTech Innovation and Investment by working with both sides of Government, Industry and the Australian FinTech community to create a supportive environment and partner ecosystem in Australia and abroad.
About Mastercard (NYSE: MA) www.mastercard.com
Mastercard is a global technology company in the payments industry. Our mission is to connect and power an inclusive, digital economy that benefits everyone, everywhere by making transactions safe, simple, smart and accessible. Using secure data and networks, partnerships and passion, our innovations and solutions help individuals, financial institutions, governments and businesses realize their greatest potential. With connections across more than 210 countries and territories, we are building a sustainable world that unlocks priceless possibilities for all.
