Australia should consider a purpose-built open banking implementation entity modelled on the UK's OBIE to ensure effective collaboration between the industry and regulators, according to a white paper from NatWest and NAB.
With the two countries both well advanced on their open banking journeys, NatWest and NAB have jointly authored a white paper exploring the common threads that bind Australia’s Consumer Data Right (CDR) and the UK’s Open Banking regime.
The CDR regime was modelled on the Open Banking framework but it departed from its predecessor, which confined itself to the sharing of banking information and to payment services, by looking to create a whole-of-economy data portability framework.
The UK now is also looking beyond banking and finance to open data.
The white paper concludes that both countries are heading in the right direction. However, reform is needed to ensure that these regimes keep pace with technological change and achieve their potential to enable greater competition, innovation and ultimately deliver benefits to consumers in both nations.
For Australia, an OBIE-type regime could ensure better collaboration between industry and regulators, while the UK should look to mimic Australia's efforts to create an economy-wide data sharing regime.
Both jurisdictions should keep in mind global interoperability to ensure they remain at the forefront of technology-led trade and look beyond a sectoral approach and towards 'Open data'.
Meanwhile, both should also embed a role for digital identity, without which the regime will not be able to scale and deliver the promised benefits to consumers and the economy, says the paper.
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