Banks, energy utilities and telcos have been put on notice the government will push forward with powerful changes to the consumer data right to give customers the ability to switch providers with a few clicks of a mouse, despite banks’ calls for the extension to be delayed.add an “action initiation” power to the consumer data right
But action initiation will allow customers of banks, telcos and energy companies to allow an accredited third party to not only read data but act on a customer’s behalf to conduct payments, or close an old account to enable switching to a new provider.The Australian Financial Review“That is where consumers, and beyond the financial services sector, can start directing actions, payments and a range of activities that are pretty clunky at the moment.
“The rules and policies governing the way data is transferred in the CDR environment are actually an answer to the cyber risk problem, not a cause of it,” he said. “There are greater protections and rules in the CDR regime than any of the alternatives going on, like screen scraping or business-to-business transfers.”Indeed, he warned fintechs and others using screen scraping to prepare for it to eventually be outlawed – as it has been in the UK and Europe.
StephenJonesMP Not all elderly customers have moved to digital transactions. My father still has a passbook and can't do any transactions at a Post Office. Banks in 3 surrounding suburbs have all gone. My own local area has no bank, no big 4 bank ATM, and we are in the middle of Sydney.