Non-Bank Lenders Brought Under Consumer Data Right
Synopsis
The latest expansion of the Consumer Data Right aims to improve competition by giving consumers greater control over their financial data.
Key Highlights
- CDR-new requirements to share product data for non-bank lenders.
- Non-bank lenders get access to consumer data sharing in stages from 9 November.
- Consumer-focused reforms to make it simpler for consumers to compare products and more easily switch between lenders.
Under the framework, banks and energy companies have to share product information, such as interest rates, fees and eligibility, through their Consumer Data Right (CDR), which means non-bank lenders too must follow suit. Non-bank lenders will be able to share consumer data in stages starting 9 November.
More Consumer Access to Loan Information
With the new Consumer Data Right framework, consumers will have better access to their data and be able to use that information for comparing financial products, streamlining loan applications and determining whether switching lenders would provide a better deal.
CDR is an opt-in service for consumers that they can select when to share their information, with clear visibility of who will receive the data and how it will be used.
ACCC Claims Variations Will Benefit Competition
This is co-regulated by the Australian Competition and Consumer Commission (ACCC), and the Australian Information Commissioner.
Expanding the CDR into non-bank lenders would provide consumers with a more holistic picture of significant household expenses, mortgages, power bills, car finance and personal loans, ACCC Commissioner Ian Oppermann said.
He also commented that increased availability of product information in a consistent format would facilitate comparison services and other CDR-enabled tools to offer improved information on loans from non-bank lenders, where consumers are increasingly sourcing their credit
Source: Capital brief
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