Insight: Six strategies to get Australia’s CDR back on track

Last week, the Australian Senate passed the Action Initiation Bill. Although the bill, which had been neglected for nearly two years, was tabled and passed without substantial debate or consideration, and despite the mounting criticism the whole effort faced, action initiation was the crucial missing element in the Consumer Data Right (CDR) framework.

Action initiation will allow consumers to not only share their data but also initiate actions or instructions to third parties, to act on their behalf. It could include payments or general action initiation as a service. Think switching service providers, porting that mortgage without having to step foot in a branch, or updating personal details on an account.

This increased control can make the CDR more appealing and practical for everyday use. By enabling consumers to take direct actions through accredited service providers, the process becomes smoother and less cumbersome. This can reduce the barriers to participation and make it easier for consumers to manage their data and services.

The passing of the bill has been heralded as the push that the CDR needed to get moving again. I’m not sure if I agree. I liken the passing to an announcement that there will be a Super Bowl or a Grand Prix at some point in the future. No date has been suggested at this time. The ‘event organisers’ have shared that they will be consulting with the market for the third time on the same topic.

The underlying announcement should be celebrated, with eager anticipation of what is to come. For the industries that surround the sporting codes, a glimmer of hope reappears.

However, the announcement in isolation does not come close to the sheer amount of back-breaking work that must be done to achieve the vision. When the same organisers are rallied to produce this event, which has been heavily criticised for past events’ issues and challenges, and dare I say, failures, one could be forgiven for a healthy sense of apprehension and scepticism.

Australia does, however, need action initiation, and we need it soon if the CDR is going to progress.

The government’s recent CDR reset 

The recent announcement by Assistant Treasurer and Financial Services Minister Stephen Jones of a ‘reset’ for the CDR was not a surprise, echoing his statement from one year earlier at the same event. One announcement, if followed by activity, could be seen as cautiously addressing existing challenges or frictions within the initial rollout, not wanting to repeat previous failures.

However, can two announcements over 15 months, where little to no activity has occurred, be seen as a positive for the regime?

Reactions from the market have been mixed. With heavy criticism over the cost of complying with the CDR from the data holder side, a pause in additional spending for a period has dampened the noise.

On the flip side, a slowing of the rollout and future expansion of the CDR does little to encourage adoption by consumers, or the further development of critical use cases that will lead to the economic development that Australia needs.

Despite the stagnation, the continued delivery of the CDR and its impact on the Australian economy remains crucial. Aligning with the global rollout of Digital Public Infrastructure, the CDR will enhance consumer experiences, ensure the safe passage of data that is the lifeblood of our digital lives, alleviate cost-of-living pressures, and boost internal efficiencies for participating businesses.

The promise of the CDR is too significant to be overlooked, and its successful implementation will herald a new era of economic and technological advancement for Australia.

A reset, if followed by activity, in isolation, is not a bad thing – but will the activity follow this time?

Six key strategies to advance the CDR

1. Revise privacy laws

Without a robust privacy framework like the General Data Protection Regulation (GDPR), consumer protections have become overly complex. Aligning the Privacy Act with a stronger framework could streamline the cumbersome accreditation process.

2. Simplify accreditation

Australia’s complex system prevents some businesses from gaining accreditation. Simplifying it would allow more businesses to serve customers effectively.

3. Strengthen compliance

The Australian Competition and Consumer Commission (ACCC) has hesitated to enforce data holder compliance, raising concerns about self-regulation. Real-time monitoring, as seen in the UK’s Open Banking model, is critical to maintaining consumer trust and ensuring smooth operations.

4. Create a dedicated implementation agency

Separating enforcement from implementation is essential. A specialised agency should be established to focus on delivering the CDR vision, integrating the Data Standards Body and technical infrastructure (Register).

5. Set clear success metrics

Establish objective benchmarks to assess CDR progress and maturity, including participation, data metrics, and API performance indicators.

6. Launch public education and awareness campaigns

Despite funding, no public education efforts have been launched. Learning from the UK’s Open Banking Implementation Entity (OBIE), Australia should initiate a national campaign to drive CDR adoption and engagement.

To move the CDR forward, Australia must address current challenges and apply global lessons. By focusing on key reforms and a clear roadmap, the CDR can enhance consumer trust and position Australia as a digital leader.

This is a crucial opportunity to correct course and get it right.

Jamie Leach is an Open Data strategist at Raidiam