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Sat, 15 Mar 2025

CDR Action Initiation Explained: Transforming Banking, Payments, and Energy

Under Australia’s Consumer Data Right (CDR), action initiation is a major next step. While the original CDR framework focused on data sharing, action initiation extends the capability to do things on behalf of a consumer, not just view their data.

What is Action Initiation?

With action initiation, consumers can authorise accredited providers to initiate actions such as:

  • Making payments
  • Switching service providers
  • Updating direct debits
  • Opening or closing accounts

It’s a powerful shift from passive data access to real-time, consumer-directed control, and it’s set to reshape key industries like banking, energy, and beyond.

How Action Initiation Works

Action initiation is built on two key roles:

  • Accredited Action Initiators (AAIs): These are third parties accredited to initiate actions with a consumer’s consent.
  • Action Service Providers (ASPs): These are data holders (like banks or energy retailers) that actually execute the requested action.

This split allows flexibility. A consumer can authorise an AAI (like a fintech app) to initiate a payment, and the ASP (the bank) will process it, securely and compliantly.

Why It Matters for Banking

Action initiation means consumers can:

  • Transfer funds between accounts in real time
  • Make bill payments directly from their preferred apps
  • Switch bank accounts or providers with a single click

For banks and fintechs, this opens up:

  • New business models for embedded finance
  • Smarter automation for money movement
  • Improved user experience with less friction

It’s a leap towards programmable banking, where data and actions work seamlessly together.

Impact on Payments

CDR action initiation enables:

  • Direct account-to-account payments (bypassing card networks)
  • Recurring payments with better control
  • Real-time settlement and reduced fees

For merchants and platforms, this means:

  • Lower payment costs
  • Reduced chargeback risks
  • Easier customer onboarding

Payments innovation is no longer limited to cards and wallets. CDR creates a new lane for payment rails in Australia.

Transforming the Energy Sector

With action initiation, energy consumers can:

  • Switch providers easily when a better deal becomes available
  • Set up or cancel direct debits for energy bills
  • Automate energy plan comparisons and switch when thresholds are met

For energy retailers, this means:

  • Better customer retention through smoother onboarding
  • Competitive pressure to offer more flexible plans
  • Opportunities for innovation in pricing and bundling

What Businesses Need to Do Now

Action initiation is already law, and the ecosystem is gearing up. Businesses should:

  • Assess their eligibility for AAI or ASP roles
  • Review their security and consent infrastructure
  • Partner with trusted CDR API providers to enable action flows

How Fiskil Helps You Prepare

Fiskil offers CDR-ready APIs for both data sharing and action initiation. Our platform is built for:

  • Secure consent handling
  • Fast, reliable API integrations
  • Full compliance with CDR obligations

Whether you’re a fintech, lender, or energy provider, we help you harness CDR to deliver smarter, real-time services for your customers.

Get Started

Talk to us today at fiskil.com to learn how action initiation can power your next innovation.

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