Legislation that will allow consumers to benefit from open banking was suspended with the dissolution of Parliament ahead of April’s elections.
At the start of July, the big four banks embarked on the open banking trial by launching product data, with the timeline expected to have consumer data ready for next year.
The fintech industry has urged the government to pass the legislation, fearing that the legislation will not be passed in time enough to be implemented.
Those fears were stoked by Assistant Financial Services Minister Jane Hume, who said the bill needed to be passed this week to give the sector enough time.
Labor meanwhile urged caution before rushing through a data bill, which could delay government legislation.
The government said the reforms would encourage competition, leading to better prices for customers and more innovative products and services.
“This initiative has already significantly improved levels of transparency on the terms and conditions of a wide range of banking products, with three of the big four banks voluntarily launching the first stage of consumer data rights on July 1, 2019.” , said Treasurer Josh Frydenberg.
Mr Frydenberg said the next stage, scheduled to launch in February 2020, will give consumers greater access to their personal information stored by banks, and the launch is on track.
“Progress towards the February launch is well underway. The ACCC will publish the “containment” version of the rules governing the system by the end of August; and the Interim Data Standards Body last week released the draft implementation of technical standards,” he said.
Mr Frydenberg said consumer control of data would enable better price comparisons and encourage more convenient switching between products and suppliers.
“Better access to data will also enable the development of better and more practical products and services, tailored to the needs of individuals,” he said.
The government’s announcement was welcomed by the ABA, whose executive director of policy, Christine Cupitt, said it was a crucial step in ensuring the system was safe and secure for all Australians during of its launch.
“Giving customers better access to their data will make it easier and simpler to shop for a better deal on a credit card, followed by home loans and other banking products… Passage of this legislation is a step important to establish a safe and secure system,” she said.
FinTech Australia chief executive Rebecca Schot-Guppy said she was pleased to hear the rollout of consumer data rights was accelerating.
“We believe the impact of this reform on the financial services sector will be exponential and transformative. This is a key element for fintechs looking to create new services that increase competition and improve financial literacy,” she said.
The rollout was the first hurdle in what would be a long process, Ms Schot-Guppy said, but consumers will benefit from the right once it reaches its full potential.
“If the UK experience is anything to go by, policies around consumer data rights and open banking will require continued support and promotion if they are to realize their potential,” she said .
