Chartered Accountants Australia and New Zealand (CAANZ), CPA Australia (CPAA), and the Institute of Public Accountants (IPA), have raised concerns about the inclusion of non-bank lenders (NBLs) in the Consumer Data Right (CDR) expansion.
In a joint submission to the Treasury, the organisations warned that the proposed expansion could result in large NBLs gaining a competitive advantage over consumers in the expansion process.
While the bodies approved of NBL inclusion in the CDR, they stressed that certain issues need addressing to ensure fair and effective implementation.
The joint bodies highlighted that the inclusion of non-bank lenders in the CDR would allow consumers to use their data more broadly within Australia’s banking system.
However, they also noted that participation would only be mandated for very large and large NBLs, which could result in prohibitive costs for accreditation and compliance.
The bodies recommended that Treasury explore ways to mitigate these costs and make participation more accessible to a broader range of players.
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By GlobalDataThe press release stated that: “We are also expressed concerned with the proposed change, reducing from 7 years to 2 years, the mandatory period for a bank or NBL data holder to provide a consumers’ historical data. It appears this is based on minimising the impact on large data holders rather than how consumers would seek to use their historical data or when the professionals that service consumers require that historical data.
“We raised that such a change appears contrary to, and will not achieve, Treasury’s stated aims of increasing the availability of data and helping consumers to better understand and manage their finances.”
Furthermore, CA ANZ, CPA Australia, and IPA indicated that the inclusion of NBLs in the CDR expansion would not deliver the originally anticipated outcomes.
The bodies also questioned the rationale behind the thresholds set for the proposed classes of NBLs designated for mandatory data sharing.
Additionally, CA ANZ, CPA Australia, and IPA called on Treasury to work with industry stakeholders to find alternative solutions, particularly for smaller data holders.
They recommended identifying data holders that smaller players could connect to, reducing the financial burden of accreditation and ensuring a more inclusive expansion of the CDR.
The bodies also emphasised that the expansion of the CDR to other sectors of the economy should not be determined by the resources of potential data holders.
They stressed that the CDR’s digital infrastructure platform should be designed to benefit consumers, not to favour larger players who have more resources at their disposal.
This announcement comes after CA ANZ marked a decade since the merger of the Institute of Chartered Accountants Australia and the New Zealand Institute of Chartered Accountants.
