The ACCC welcomes the commencement of new obligations today requiring non-bank lenders to begin sharing product data such as interest rates, fees, charges and eligibility criteria through the Consumer Data Right (CDR).
Sharing this information through CDR supports the development of comparison services and will help consumers and small businesses to access better value and improved loan options.
The Consumer Data Right, which underpins Australia’s open banking regime, commenced in 2020 when the major banks began sharing data. Since then, the scheme has expanded in stages across the banking and energy sectors, and now to the non-bank lenders sector.
“The expansion of the Consumer Data Right to non-bank lenders is a significant step in giving consumers access to information about the broadest possible range of financial products,” ACCC Commissioner Dr Ian Oppermann said.
“The inclusion of non-bank lenders in the CDR will give consumers a more complete picture of some of the largest household costs, including their mortgage, power bill, and car finance and personal loans.”
More than 1.3 million Australians are currently using CDR, an increase of approximately 135 per cent over the last year. Use of the CDR is expected to continue growing as it expands into non-bank lending.
Consumer data sharing for non-bank lenders will be phased in from 9 November 2026, depending on the size of the provider.
Once available, consumers will be able to use their own data (that is, the consumer data a financial institution holds) to compare products, streamline loan applications and consider whether switching lenders could help them get a better deal.
“Loans are among the biggest financial commitments for many Australians. Making more product information available in a consistent way will help comparison services and other CDR-enabled tools give consumers better information when they are looking to borrow from a non-bank lender,” Dr Oppermann said.
At least 35 new data holders (businesses that hold consumers’ financial information) will enter the CDR as a part of this expansion.
The ACCC has worked closely with industry and other CDR agencies to support implementation of the new requirements.
The ACCC and the Office of the Australian Information Commissioner jointly regulate the CDR and are responsible for ensuring CDR participants, including accredited providers and data holders, comply with their obligations.
Insufficient data quality and compliance with implementation timeframes remain ACCC compliance priorities. The ACCC has previously taken enforcement action in response to alleged non-compliance with CDR obligations.
Background
CDR is an economy-wide reform that is being rolled out sector by sector. It started with banking in 2020, expanded to energy in 2022, and now is being rolled out to the non-bank lenders sector.
Non-bank lenders are financial institutions that provide credit or loans but do not hold a full banking licence and are not Authorised Deposit-taking Institutions, which means they do not take customer deposits in the way banks do.
They can include mortgage lenders, car finance providers, personal loan providers and ‘Buy Now Pay Later’ providers.
Some non-bank lending products can be more complex than traditional banking products, including where pricing is tailored to a borrower’s individual circumstances.
How CDR works
CDR is an opt-in service that gives consumers choice about whether they share their data, with full visibility of who it’s being shared with and the purpose for sharing it.
It can make it easier for consumers and small businesses to:
- compare products and services
- access better value and improved services
- assist financial and cashflow management.
The transfer of consumer data occurs between data holders and accredited persons, or accredited providers. The Australian Government has designed and oversees the system to ensure it is safe and secure for consumers.
Accredited providers must go through a rigorous process to become accredited by the Data Recipient Accreditor to provide services to consumers using CDR data.
A list of current providers, along with further information about CDR, is available on the CDR website.
