Government progresses work on open banking

A CDR is a mechanism that would require data holding businesses to safely and securely share data with an accredited third party, should a consumer request it.  

Since the government agreed to progress a CDR in 2021, work has been underway to consider what sectors a CDR would apply to first and how this framework will work in practice.

Also called ‘open banking’, a CDR in the banking sector would allow customers to request data sharing with a third party that would provide value-added services, such as payment services or financial analysis, helping them make better-informed financial decisions. Banking was also the first sector designated in Australia.

Other sectors that may be considered for designation in the future include financial services, telecommunications, insurance, energy, and health.

Work is now underway on the design options for the regime to ensure it is safe, simple, and cost effective for participants and government.

The next step will be industry engagement and consultation, which will include the release of an exposure draft Bill.

Read the MBIE consumer data right webpage

Read the Minister’s press release(external link) — Beehive.govt.nz