FinTech Australia Welcomes Productivity Commission’s Call for Universal Open Banking

FinTech Australia Welcomes Productivity Commission’s Call for Universal Open Banking

FinTech Australia has welcomed the release of the Productivity Commission’s final inquiry report on harnessing data and digital technology, which estimates that an efficient Consumer Data Right (CDR) regime may enhance Australia’s Gross Domestic Product (GDP) by as much as $10billion per 12 months.

The peak physique for the Australian fintech sector praised the report for siding with its submissions concerning key obstacles to the CDR rollout, particularly the rejection of exemptions for smaller banks.

Universal coverage is key

Rehan D’Almeida, CEO of FinTech Australia

A major focus of FinTech Australia’s response was the report’s ruling out of a de minimis exemption for small banks. The affiliation argues that for Open Banking to succeed, it must be a common normal reasonably than a fragmented system.

Rehan D’Almeida, CEO of FinTech Australia, commented: “We oppose creating a de minimis exemption for small banks. Open banking works because it’s universal. Carve-outs would fragment coverage, disadvantage customers of smaller institutions, undermine competition, and risk pushing some consumers back toward less secure workarounds.”

Removing friction for SMEs

The report also recommends sensible reforms to take away friction for Small to Medium Enterprises (SMEs) making an attempt to utilise the CDR. Currently, enterprise homeowners often face “inconsistent, paper-heavy processes,” including necessities for moist signatures and bodily department visits to nominate nominated representatives.

D’Almeida famous that these archaic necessities create major obstacles and high drop-off charges, stopping the CDR from getting used as meant. “Aligning these requirements with ordinary online business is a key way to enable SMEs to make their data work for them,” he said.

FinTech Australia also endorsed the report’s push for streamlined disclosure consent, which might enable Australians to direct accredited suppliers to share their data with trusted third events more simply. D’Almeida described the current complexity as one among the “biggest blockers to high-value, everyday use cases.”

D’Almeida concluded by emphasising that the regime must ship for real-world customers, not just policymakers: “This is bigger than fintech. Every CDR decision must be centred on the consumer, empowering everyday Australians to make better financial decisions, whether they’re comparing products, applying for credit, or building confidence in their financial choices.”

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