Securely share your data
When you give consent for an accredited provider to access your data, you choose the data you’re sharing. You also choose the specific purpose for which your data will be used. This must be clearly set out on the provider’s website or app.
The consent process takes place in the accredited provider’s website or app. Importantly, while the process is done online, accredited providers don’t have access to your banking login or password details.
After the consent process has been completed, the accredited provider gets your data from your existing provider (such as your bank). The data is transferred electronically in a standardised, machine-readable format. Data must follow the data standards created by the Data Standards Body (DSB). The process uses technology called APIs (application programming interfaces) and was designed using industry best practice to maximise data security.
First, providers must become accredited. The accreditation process is managed by the Australian Competition and Consumer Commission (ACCC). Providers must meet specific criteria and go through a rigorous testing process before they can become accredited. For example, they must show they have processes in place to protect data from misuse, interference, loss, unauthorised access, modification or disclosure.
If you believe a provider hasn’t followed the rules you can make a complaint to them. If a provider does not respond within a reasonable period (for example, 30 calendar days), or does not resolve the matter, you can make a complaint to a recognised external dispute resolution scheme, or the Office of the Australian Information Commissioner (OAIC).
See Your rights
As part of the consent process, you say how long the accredited provider has access to your data. The maximum period is 12 months. You can give the provider access for a single use within a specific time frame, or for multiple uses over a specific period of time. You can also easily withdraw consent at any time. If you withdraw consent, you also choose whether the data should be deleted and/or de-identified. This is all managed on the provider’s website or app. By law, this process must be easy to access and understand.
The Consumer Data Right is regulated by the ACCC and the OAIC. The data standards have been developed by the DSB. These regulators have set up the Consumer Data Right system’s privacy and security controls.
Find out more about how your privacy is protected in this video.
Products tailored to you
Current comparison websites rely on you answering questions about yourself to come up with comparative products and services. If the questions are too general, or you don’t know the exact answer, this will affect the accuracy of the price estimates you receive. However, Consumer Data Right can give them much more accurate information, as your real data is sourced directly from your existing provider. Comparison websites can use Consumer Data Right data in the future, if the website or company has been accredited and if you give consent.
While you will need to go online to give explicit consent for an accredited provider to access your data, this process is much faster than gathering documentation (for example, pay slips, tax returns, bank balances and interest rates) and filling out forms or spending time giving detailed information over the phone.
Consumer Data Right uses technology called application programming interfaces (APIs). APIs are a structured way to represent data stored in a database. The DSB has developed compulsory data standards for the functionality, security, performance and user experience of Consumer Data Right. These standards build on existing banking and financial API standards. The standards define the format and process for sharing data. This is all done securely using technology (automatically) rather than entering information manually.
Benefits from competition
People will be able to compare products and services quickly and easily, making it easier to shop around. Providers will have to improve their offerings to stay competitive. This will drive down costs and lead to better deals.
The Australian Government expects Consumer Data Right will lead to new and innovative products and services as consumer data becomes more widely available throughout the economy. It will also increase competition in the marketplace. This means there will be more products and services for you to choose from.