Open Banking and Open Data in Australia: Global Context, Innovation and Consumer Protection

‘Open Banking’ is a digital finance innovation built upon customer data sharing between incumbent financial institutions and third party financial service providers. Open Banking is reshaping the banking sector through extending the reach and convenience of traditional banking services by opening up and leveraging consumer data. This disruption is both challenging and changing the nature of established banks and banking. This article provides a brief global survey of Open Banking regulatory developments as context for Australia’s new Consumer Data Right (CDR) regime. Spearheaded by the Open Banking movement, the CDR is the first step Australian policymakers have taken towards realizing the potential of open data capitalism. Australia is a jurisdiction, like the EU, that is increasing taking data protection and control seriously. We argue that emerging Australian Open Banking arrangements are both a measured response to digital financial developments, and another front in Australia’s ongoing commitment to uphold online consumer protection and empowerment.