2024 non-bank lending comes into the Consumer Data Right

Unlocking the Future of Finance

Australia is on the brink of a significant evolution in the financial sector as the Consumer Data Right extends its reach into open finance, marking a pivotal shift from its inception in open banking in 2020 and subsequent expansion into open energy in 2022. The inclusion of non-bank lending under the CDR umbrella in November 2024 heralds a new era of innovation and consumer empowerment in finance.

The new CDR Rules for Non-Bank Lending

The upcoming CDR expansion is set to change the data sharing landscape for individual and business consumers by enabling them to leverage data sharing from non-bank lenders. The Australian Treasury's draft legislation, introduced in August, lays the groundwork for amended CDR Rules and new technical data standards, aiming to integrate non-bank lenders into the data sharing regime if they meet specific criteria.

This expansion brings buy-now pay-later (BNPL) products into the fold for both banks and non-bank lenders, ensuring a more inclusive and comprehensive financial ecosystem.

Key Milestones and Participants

The rollout categorises non-bank lenders into "initial providers" and "large providers" based on their loan book sizes. By November 2024, all of these entities are expected to begin sharing product data, with phased timelines for compliance with consumer data sharing protocols.

The Scope of Inclusion

The CDR's embrace of non-bank lending covers an extensive array of financial products, from credit cards and personal loans to business finance and BNPL products. This broad inclusion ensures a wide-ranging impact across the financial services sector.

Responsibilities as a Data Holder

Becoming a data holder under CDR entails critical responsibilities, including the provision of a consumer dashboard, secure data sharing via API endpoints, metrics, secure authorisation, a dispute resolution process, and adherence to privacy safeguards and technical standards. These requirements underscore the importance of robust IT systems capable of handling API calls efficiently around the clock.

Preparing for Compliance: Strategies for Non-Bank Lenders

Non-bank lenders stand at a crossroads in their approach to CDR compliance: architecting their bespoke solution or embracing a partnership with a seasoned provider like Fiskil. Fiskil stands out by offering a comprehensive "Data Holder as a Service" SaaS solution, designed to streamline the compliance journey. Leveraging the insights gleaned from the banking and energy rollout, engaging with Fiskil can significantly accelerate the compliance process, ensuring readiness in less than six weeks. Reducing ongoing operational costs for keeping teams inline with ongoing regulatory changes.

Fiskil: Your Partner in Navigating Open Finance

Fiskil stands at the forefront of the Consumer Data Right (CDR) expansion, offering an unparalleled SaaS Data Holder platform and comprehensive Data APIs that cater directly to the evolving needs of the open finance ecosystem. Our secure, compliant solutions ensure seamless data integration and sharing, covering over 97% of Australia's Banking and Energy sectors without the need for external partnerships. Trusted by leading Energy Retailers and Banks, Fiskil empowers non-bank lenders to navigate the CDR. Get in touch.