What is Open Banking?
The Consumer Data Right (CDR) is an opt-in service which gives consumers greater access and control over their data.
The initial stage of the CDR, commonly called Open Banking, requires credit unions and banks to make their product data publicly available. This enables accredited organisations, such as comparison sites Mozo.com.au or Canstar.com.au, to present detailed comparisons of products offered by banks and credit unions in terms of interest rates, fees and charges and product features, making it easier for consumers to compare products such as personal loans, credit cards or savings account.
The current stage of the CDR enables consumers to authorise their credit union or bank to share their data with accredited organisations, making it easier to compare and switch products and services or access new and improved services.
Open Banking is an opt-in service which we provide, meaning members choose whether to use it or not. Learn more about what Consumer Data Right is, and how it will benefit you Australia here.
How Open Banking may benefit you
The aim of Open Banking and the CDR is to increase competition in financial services, by enabling you to access your data and negotiate better deals and save money. It will make it easier for you to compare and switch between products offered by credit unions and banks, or provide your transaction data to an CDR-accredited app or website.
The CDR will eventually extend to other industries, including energy and telecommunication providers.