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A free new tool that enables current and new participants in the Consumer Data Right to test and improve their solutions has been launched by the ACCC.
The Australian Competition & Consumer Commission (ACCC) has unveiled a new Consumer Data Right (CDR) sandbox to help new and existing participants test and develop open banking solutions.
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The free tool, which behaves and functions like the actual CDR ecosystem, aims to help reduce time and cost in the process of becoming an active CDR participant or updating their CDR offering.
It also aims to improve the quality of data shared between participants.
Users can set up their own software solutions and communicate with the existing mock solutions and other participants within a secure testing environment.
For example, users can test the CDR system as a mock data holder (such as a lender), mock data recipient (such as a personal finance management app), or a mock register.
Speaking of the new sandbox, ACCC Commissioner Peter Crone said “Creating a sandbox to complement our existing mock solutions tools is just one of many steps we are taking to make the process for businesses joining the Consumer Data Right easier and more affordable.
““The CDR sandbox will also help participants improve the effectiveness of their data sharing offerings.”
“As the CDR develops, it is important that flexible testing options are available for participants wanting to become active in the Consumer Data Right, so that the ecosystem can expand, and consumers can have more and more choices,” he added.
The sandbox will reportedly remain available to participants after they become active, to “assist them in refining and developing their services and products”.
In October 2021, the government confirmed amendments to the CDR rules, formalising the ability for consumers to share their data with “trusted advisers”, such as their mortgage broker, financial adviser, accountant, tax agent or financial counsellor.
The changes came about after public consultation on the standards that, in their previous state, did not allow the disclosure of CDR data by an accredited data recipient such as a bank to other parties outside of the system that consumers wished to share their data with.
However, after industry consultation and feedback, the government changed the rules in a bid to enable borrowers to have greater choice in whom they are sharing their data with so they can better compare and switch between products and services. It also helps ensure privacy and security protections are retained to control what data is shared, for how long, with whom, and for what purposes.
That gives brokers better ability to access the consumer’s data for their benefit and can better help them decide on a loan application or ready to finance.
You can find out more about the CDR and how brokers can access it in the July edition of The Adviser.
Check out the Opening Up feature, partnered by NextGen, here.
[Related: Opening Up]
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