Australia delays Open Banking roll out over security concerns

Australian authorities have delayed the introduction of Open Banking rules by six months amid concerns over testing and security of the new provisions for account data sharing.

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Australia delays Open Banking roll out over security concerns

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The country's competition watchdog ACCC has updated the timeline for the implementation and launch of the Consumer Data Right (CDR) act in the banking sector from February to July 2020.

Under the revised deadline, consumers will be able to direct major banks to share their credit and debit card, deposit account and transaction account data with accredited service providers from 1 July 2020. Consumers’ mortgage and personal loan data will be able to be shared after 1 November 2020.

“The CDR is a complex but fundamental competition and consumer reform and we are committed to delivering it only after we are confident the system is resilient, user friendly and properly tested,” ACCC Commissioner Sarah Court says. “Robust privacy protection and information security are core features of the CDR and establishing appropriate regulatory settings and IT infrastructure cannot be rushed.”

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