NextGen supports Government “CDR Reset” – paving the way for increased adoption and reduced costs

NextGen, Australia’s leading technology solution provider to the lending industry has praised the Government’s announcement on the future direction of the Consumer Data Right (CDR) and the “reset” to make the CDR more consumer-focused, reduce costs, and encourage wider adoption by both businesses and consumers.

Tony Carn, NextGen Chief Customer Officer said, “We’re extremely supportive of the CDR announcement, which outlines concrete changes which will benefit consumers, lenders and brokers,” Mr Carn continued, “In particular, the enhancement to consumer safety with the direction of a full and formal ban of screen scraping”.

Mr Carn’s response was in relation to the speech made by The Hon Stephen Jones MP, the Assistant Treasurer and Minister for Financial Services in Sydney on Friday. In the speech, Mr Jones re-affirmed the Government’s belief and commitment to CDR and the opportunities it offers to drive greater competition in our economy, protect user data, and foster innovation that benefits consumers.

The following are the key changes included in the announcement that will benefit consumers, brokers and lenders in Australia.

• Banning Screen Scraping: The Government is moving towards a full and formal ban on screen scraping. To support this transition away from insecure screen scraping, NextGen Open Banking is set for expansion with more lenders and aggregators turning on our solution in the coming months, increasing the number of brokers with free access to the service.
• Streamlining Consent Processes: The Government will simplify the consent process for consumers, allowing them to provide multiple consents in a single action, which will make it easier for consumers and small businesses to benefit from the CDR and reduce compliance costs for lenders.
• Expanding to Non-Bank Lending: The CDR will expand to include non-bank lending data by 2026. The inclusion of non-bank lenders will provide a more complete and comprehensive view of a customer’s finances for brokers and lenders, leading to better and more informed choices for customers.
• Changes to Standards and Reducing the Scope: To reduce costs and improve the system, changes to CDR standards will be done in a more consultative way and limited to a small number of scheduled releases per year, with longer lead times and a focus on consumer benefits, costs, and regulatory impact. Treasury will also examine narrowing the scope of the CDR to remove data that is unlikely to be used, reducing unnecessary costs for lenders.
• Increasing Uptake: The government will focus on high-value use cases like consumer finance, energy switching, and small business accounting. Encouraging industry to bring forward specific, high-value use cases and experimenting with potential use cases to identify and remove barriers to adoption.

Learn more about NextGen Open Banking

For mortgage brokers or lenders who wish to learn more about NextGen’s Open Banking solution, NextGen offers free webinars as an introduction to Open Banking.

Visit our webinar page

Alternatively, watch our introduction to Open Banking video below.