The Federal Government has introduced new rules for the Consumer Data Right (CDR) scheme, promising to spur consumer uptake and remove barriers to data sharing between banks, fintechs and other FSIs.

The changes, flagged by the Government in August, are expected to make it easier for consumers to opt in to sharing their data and make the scheme more cost-effective for businesses to adopt – a concern previously flagged by industry.

Among the key changes include:

• The bundling of consents, enabling consumers to provide multiple consents through a single action. This simplification of the consent process promises to “improve the consumer experience and increase uptake” as well as streamline requirements for providers.
• Simplifying requirements for accredited bank seeking data from consumers, resolving what was regarded as “complex and confusing” process for consumers, that resulted in frequent drop outs, the Government noted.
• An extension of a trial of CDR‑enabled energy products to 24 months (up from 12 months) and to 2,000 customers (up from 1,000), designed to support “the unique nature of energy contracts”.

FinTech Australia chief executive Rehan D’Almedia welcomed the changes, which he said would “help move the needle on CDR adoption”

“[This] follows a strong push from our membership to make it easier for consumers to give their consent and to streamline operational processes”.

Financial Services Minister Stephen Jones, who announced the changes, said the reforms would ensure the CDR framework is back “on a more sustainable footing”.

Treasury will undertake further consultation with stakeholders on proposed amendments to improve business consumer participation in the CDR.

A snapshot review of the CDR at the end of 2023 found just 0.31 per cent of Australian banking customers were actively using the data-sharing scheme, with the banking industry collectively investing around $1.5 billion to get the scheme off the ground.