Australia’s Consumer Data Right: A blueprint for building data-driven fintech applications
In Australia, the Consumer Data Right (CDR) is a legislated framework that gives consumers greater control over their data. It was officially launched on July 1, 2020, and initially focused on the banking sector. The Commonwealth Bank of Australia was the first of the "Big 4" Australian banks to become an accredited data recipient under the CDR scheme. The independent statutory review of the CDR in 2022 found the framework to be broadly effective.
CDR allows Australians to securely access and share their data with accredited third parties — such as comparison services, financial planners, or apps — supporting better product choices, improved service, and more competition among providers. It is a framework that forms the foundation for any data-driven innovation, including in the fintech field. And why is data so important for fintech?
Data is what makes modern financial technology work. It helps companies offer personalized banking, real-time financial advice, and faster loan approvals. With access to accurate customer data, fintech companies can better understand what people need and create products that fit those needs.
With CDR, fintech businesses in Australia can get the financial data they need — safely and with permission from consumers. This means they can build smarter apps and services that help people manage their money in new and better ways. With more data, fintechs can move away from generic solutions and offer financial products tailored to each person. In this way, data helps create more choice, better service, and fairer competition across the financial industry.
Thus, according to the Australian open banking ecosystem map and report, the total volume of CDR use cases is expected to grow rapidly from 2025 to 2030. By the end of this period, projected CDR volume increases to more than 8 million.
In the following sections, we’ll see what areas CDR covers, look at its objectives and governance structure, benefits for the fintech, usecases, and challenges.
Defining Consumer Data Right
It is easy to connect CDR with traditional Open Banking, however, these two areas should be distinguished from one another. While inspired by the Open Banking movement, Australia's CDR covers not only financial data but is progressively expanding to other sectors — such as energy, telecommunications, and beyond. This expansion increases innovation potential for fintechs by providing richer data aggregation and cross-sectoral services.
Unlike Open Banking, which strictly relates to financial products and services, CDR frameworks include non-banking data types such as:
- Energy data: Customer electricity and gas consumption, billing, usage patterns, and related product details.
- Telecommunications data: Information on phone and internet usage, plans, and service details.
- Non-bank lending data: Includes Buy Now Pay Later (BNPL), personal loans, and other credit products offered by non-bank lenders.
- Broader open finance products: Expanding beyond banks to include financial products like insurance, superannuation, and investments — both planned or in progress.
Thus, CDR moves beyond the financial sector’s boundaries, unlocking new possibilities for data-driven innovation across Australia's economy.
Objectives and governance
To realize its vision of a robust, trustworthy, and globally competitive digital economy, the CDR in Australia is guided by a comprehensive set of objectives that collectively aim to transform how data is accessed, shared, and used across various industries. These objectives include goals to:
- Empower consumers with control over their personal data by enabling safe, efficient, and convenient access and sharing.
- Support competition in sectors by making it easier for consumers to compare and switch between products and services.
- Boost transparency by providing consumers with clear information on how their data is used and by whom.
- Support the development of innovative and more tailored products and services that meet individual consumer needs.
- Promote economic growth by fostering data-driven innovation across sectors.
- Provide high levels of privacy protection, data security, and consumer trust in the data-sharing framework.
- Regulate and authorize only accredited, trusted service providers to access consumer data.
Each CDR rule and objective is basically designed to protect consumer privacy and data security as data moves between accredited parties.
As the CDR regime expands into new sectors, ongoing regulatory adjustments are anticipated. Governance of the CDR operates under a multi-regulator model involving several key bodies:
- The Australian Competition and Consumer Commission (ACCC) plays a central role in overseeing the accreditation of data recipients, providing compliance, managing the CDR Register, and enforcing CDR rules to protect Australian consumer interests.
- The Data Standards Body (DSB), within the Australian Treasury, develops technical and consumer experience standards that govern how data is securely and consistently shared.
- The Office of the Australian Information Commissioner (OAIC) regulates privacy and confidentiality aspects of the CDR, managing complaints and handling notifications related to data breaches.
- The Australian Banking Association (ABA) is a key stakeholder and representative body for Australia's banking industry concerning the CDR. The ABA has actively engaged with government consultations and regulatory rule-making processes, providing submissions to influence how the regime is implemented and evolves.
The CDR framework is established primarily through amendments to the Competition and Consumer Act 2010 and the Privacy Act 1988. These laws set out the powers and roles of the regulators, the overarching objectives of the CDR, privacy protections, and a mechanism for progressively expanding the right across new sectors.
Explore how we made a marketplace app compliant with Australia’s Privacy Act here.
Together, this governance and regulatory structure support the CDR’s goals of a robust, secure, and consumer-centric data sharing economy that drives innovation and competition while safeguarding privacy and consumer rights.
CDR: Opportunities and benefits for Australian fintech
The CDR is opening up an unprecedented landscape of opportunities for both consumers and fintech businesses across Australia. By creating a regulated, consent-based data-sharing framework, CDR is radically changing how financial and related services are delivered and experienced.
Consumer benefits
At the core of CDR is a commitment to empower Australian consumers with greater choice and autonomy in the digital economy. CDR gives users control over their data, allowing them to securely decide when, how, and with whom their data can be shared.
Data Ownership and control
Australians are now able to direct their banks, energy providers, or telecommunication companies to share their data with accredited third parties. This puts real power back into consumers’ hands: rather than being ‘locked in’ by proprietary systems or held hostage by outdated switching processes, Australians can safely authorize data flows to new service providers, comparison apps, or product platforms. Because all sharing is consent-driven, consumers always know exactly what’s being shared and can revoke that access at any time.
Personalised financial products and services
CDR allows consumers to easily share information between different financial institutions, driving competition and innovation. With access to richer, more detailed data about each customer, fintech providers can offer highly tailored solutions — from budgeting advice to investment recommendations. No longer are consumers limited to generic products; their financial journeys can be shaped by apps and tools that adapt in real time to changing life circumstances or financial goals.
Easier switching between providers
One of the major pain points in traditional finance has been the effort and inertia required to change a service provider — think moving bank accounts or switching mortgage lenders. Thanks to standardized and transparent data sharing, CDR dramatically simplifies the switching process. A CDR consumer can easily move to better deals or providers without the headache of excessive paperwork, supporting true competition in the market and ultimately driving better offers for everyone.
Business and fintech advantages
Fintech businesses stand to gain enormously from the rapidly maturing CDR ecosystem. Not only does it level the playing field, allowing new entrants to compete with incumbents, but it also accelerates the pace of product development and innovation.
Access to rich and timely consumer data
With the consumer’s permission, fintechs can tap into up-to-date transactional, income, and account data directly from banks and other CDR participants. This unlocks elegant onboarding experiences, lets companies instantly verify income or expenses, and supports real-time, data-driven decision-making, eliminating the need for cumbersome paperwork or manual data entry.
Fostering product and service innovation
When businesses can access diverse and high-quality data, they can quickly iterate on new offerings — whether it's next-generation savings apps, faster loan products, or hybrid services that cut across industries like energy and insurance.
Enhanced customer acquisition and retention
Simpler onboarding and direct data feeds mean fewer hurdles for new customers — conversion rates improve and user drop-off declines. Moreover, with continuous access — consented, of course—, providers can monitor engagement, offer timely support, and build more loyal, satisfied customer bases. Also, CDR reduces barriers for smaller banks, giving them equal opportunity to compete with larger institutions.
Superior risk analytics and decision-making
Greater data granularity provides more accurate credit scoring, fraud detection, and personalized risk assessments. This lets fintechs make sounder lending decisions and innovate responsibly.
Together, these benefits illustrate how CDR is laying the groundwork for a dynamic digital economy — one where consumers enjoy greater freedom and choice, and fintech Australia innovators are empowered to deliver smarter, more responsive, and trustworthy financial services.
Use cases enabled by CDR
With the regulatory rails in place, fintech innovation is already delivering tangible benefits across a host of everyday financial activities.
Personalised financial advisory and management
Before CDR, most digital finance advice tools had to rely on estimates, outdated statements, or user-uploaded files. Now, an accredited budgeting app can securely pull real-time account and transaction data — with consent — from multiple banks or even energy providers. Whether helping a user identify overspending, set a savings target, or manage household bills, these apps can deliver far more relevant insights, empowering users to make smarter decisions with less effort.
Enhanced credit scoring
Traditional credit checks often miss key nuances, sometimes excluding or misjudging creditworthy individuals — such as those with non-standard income sources or thin file histories. By using CDR, lenders can review a detailed, up-to-date account of a consumer’s financial life: patterns of income, regular expenses, even trends in utility payments. This results in fairer, faster lending decisions and improved access to credit for more Australians.
Seamless provider switching
Switching banks, energy providers, or telcos has historically been fraught with paperwork and hassle. With CDR, fintech platforms can facilitate "one-click switching," automatically transferring direct debits, payments, and account details with minimal disruption. This new agility helps consumers take better control of their financial well-being and checks if providers constantly strive for superior service.
Account aggregation
For many, keeping up with finances spread over multiple accounts can be overwhelming. CDR allows for the creation of unified dashboards — so-called "super-apps" — that bring together a consumer’s bank accounts, credit cards, loans, and even energy bills in one convenient view. This simplifies day-to-day money management and gives consumers a holistic understanding of their financial position.
Challenges and technical considerations in building CDR-enabled applications
While the CDR offers immense promise, realizing its full potential requires careful navigation of technical and regulatory complexity.
Data security and privacy
Security remains top-of-mind for Australia CDR fintech operators, especially as exposure to sensitive consumer information grows. An accredited data recipient must employ robust encryption for all data in transit and at rest, follow secure coding practices, and maintain ongoing security monitoring. Managing the flow and protection of CDR data is central to meeting consumer expectations and regulatory requirements.
Integration complexity
Fintech applications must connect to a variety of banks, energy companies, telcos, and other CDR participants — each with their own API specifics and ever-evolving standards. Achieving and maintaining reliable integrations demands technical expertise and a commitment to continual adaptation as the ecosystem evolves.
Consent management
Respecting consumer autonomy is central to the CDR framework. Developers must build sophisticated consent management systems that allow users to easily grant, review, and revoke access. Consent flows must be intuitive and fully transparent, providing trust and compliance.
Scalability and performance
Successful CDR-enabled applications need to handle large volumes of data requests, often in real time. Engineers must design systems that scale efficiently without sacrificing reliability or speed, particularly as user demand and the number of integrated data sources grow.
Standards compliance
CDR standards, both technical and regulatory, are regularly updated to address new risks and opportunities. Businesses must remain diligent, monitoring regulatory changes and updating their systems promptly to remain compliant and trustworthy — all while providing a seamless user experience.
CDR’s future directions and fintech
As Australia’s CDR continues to evolve, its future holds significant promise for reshaping the fintech landscape — unlocking new opportunities for innovation, competition, and consumer empowerment in an increasingly data-driven economy. The Open Banking report, envisions the following areas of improvement:
Easier SME participation
The complex nominated CDR representative process is a major barrier — about 56% of all CDR consent journeys fail on the first try, mainly due to this step. Simplifying it could unlock CDR benefits for 2.55 million SME consumers, and reduce costs for both businesses and data holders.
Simpler consent for data sharing
The consent system is complicated, with many types, like Business Consumer Disclosure Consent, Trusted Advisor consent, and more. Introducing a single Consumer Disclosure Consent would let consumers easily decide who can see their data — including some non-accredited parties — while keeping protections in place.
Streamlined consent experience
Even after recent improvements in bundling and pre-selection, 67% of users still find the CDR consent process more complex than screen scraping. Suggested fixes include removing extra requirements, making information clearer, providing app-based and biometric authentication, and adding one-click consent renewal for easier ongoing access.
Greater government support and use
When the government actively adopts CDR and promotes its use, it boosts trust and awareness across the country. This could speed up adoption, as seen in places like the United Kingdom, and strengthen connections with Australian government privacy reforms and Digital ID efforts.
Replacing screen scraping with CDR
A large majority (64%) of respondents see screen scraping as unnecessary and outdated. Replacing it with CDR’s secure, regulated sharing methods would improve data security and help prevent fraud, aligning with efforts like the Scams Prevention Framework.
Expanding sectors and new capabilities
The CDR aims to expand into new areas such as government, superannuation, and investments, enriching services and use cases. Adviser innovation, allowing consumers to share data with accredited representatives, is one of the many outcomes fueled by the open and secure flow of financial data under CDR. Capabilities like Action Initiation — letting users do more than just share data — are expected to bring even greater value to the digital economy.
Focus on cost and funding
CDR compliance and operating costs remain a concern. In 2023–2024, $88.8 million was allocated over two years to help run the CDR, but there is uncertainty about future funding. Supporting ongoing investment will be crucial for continued success, sector growth, and the ability to address emerging needs.
These recommendations are designed to make the CDR easier and more appealing for both consumers and businesses, while supporting innovation, security, and long-term sustainability in Australia’s digital economy.
How Ronas IT can help
For startups, industry incumbents, and product leaders, CDR offers the chance to lead the next generation of financial experiences — built on secure, consent-driven data sharing, personalization, and trust. Realizing this vision, however, takes more than great ideas. It requires a technology partner with deep expertise in the intricacies of consumer data standards, robust data security, and seamless integrations with complex financial and non-financial systems. At Ronas IT, we have a proven track record of delivering secure, scalable, and compliant fintech solutions tailored to the unique demands of the Australian market.
From the initial discovery and product design through to development, and ongoing maintenance, our multidisciplinary team makes sure your solution is not only compliant today but is also resilient to regulatory changes and evolving technical standards in the future. We’ll guide you through every phase — from implementing bulletproof data integrations and intuitive consent management, to supporting continuous innovation.
Ready to build your new fintech application? Contact our team for a consultation by simply filling out a short form.
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