FinTech Australia has welcomed the release of the Productivity Commission’s final inquiry report on harnessing data and digital technology, which estimates that an effective Consumer Data Right (CDR) regime could boost Australia’s Gross Domestic Product (GDP) by up to $10billion per year.
The peak body for the Australian fintech sector praised the report for siding with its submissions regarding key barriers to the CDR rollout, specifically the rejection of exemptions for smaller banks.
Universal coverage is key
A primary focus of FinTech Australia’s response was the report’s ruling out of a de minimis exemption for small banks. The association argues that for Open Banking to succeed, it must be a universal standard rather 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 practical reforms to remove friction for Small to Medium Enterprises (SMEs) attempting to utilise the CDR. Currently, business owners often face “inconsistent, paper-heavy processes,” including requirements for wet signatures and physical branch visits to appoint nominated representatives.
D’Almeida noted that these archaic requirements create major barriers and high drop-off rates, preventing the CDR from being used as intended. “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 would allow Australians to direct accredited providers to share their data with trusted third parties more easily. D’Almeida described the current complexity as one of the “biggest blockers to high-value, everyday use cases.”
D’Almeida concluded by emphasising that the regime must deliver for real-world users, 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.”