Australia delays Open Banking implementation due to security concerns

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Authorities in Australia have delayed the introduction of Open Banking rules by six months sighting concerns over testing and security around provisions for account data sharing.

Australia’s equivalent to the UK’s Competition & Markets Authority (CMA), Australian Competition and Consumer Commission (ACCC), has updated the timeline for the implementation and launch of the Consumer Data Right (CDR) act in the banking sector from February to July 2020.

Under the revision consumers will be able to instruct major banks to share their credit and debit card, deposit account and transaction account data with accredited service providers from 1 July 2020. From November 2020 consumers will also be able to share mortgage and personal loan data with regulated providers.

“The CDR is a complex but fundamental competition and consumer reform and we are committed to delivering it only after we are confident the system is resilient, user friendly and properly tested,” ACCC Commissioner Sarah Court says. “Robust privacy protection and information security are core features of the CDR and establishing appropriate regulatory settings and IT infrastructure cannot be rushed.”