The Australian Government has passed new legislation on consumer data rights, paving the way for the introduction of Open Banking.
Under the new rules, consumers will have more freedom to share their account data with third party fintechs and challenger banks.
The legislation must first be rubber stamped and locked down by the country's competition watchdog ACCC, before passing into effect by the end of the month. Banks will have until February next year to make available data sharing APIs, covering credit and debit card data, as well as deposit, transaction and mortgage account data.
CEO of the Australian Banking Association Anna Bligh says passage of the legislation lays the legal foundation for Open Banking which will increase competition across the industry.
“Following the passage of the legislation and the ACCC guidance on the rules, the industry, together with regulators, will begin rigorous testing to ensure the system is safe for Australian bank customers to use," she says. “The industry will continue to work with the government in the final stage of the introduction of Open Banking to deliver a system which both increases competition and ensures data is kept secure."