CDR in 2024: A Year in Review

The Consumer Data Right (CDR) has undergone significant changes in 2024, with key regulatory updates, industry shifts, and new opportunities for businesses looking to leverage open banking and open energy data.

From compliance crackdowns to the CDR reset and the introduction of action initiation, this year has shaped the future of Australia’s open data economy.

Here’s a look at the biggest CDR updates of 2024—what happened, why it matters, and what’s next.

April 2024: CDR Compliance Gets Serious

One of the biggest stories of the year came in April when HSBC faced penalties for CDR compliance breaches. This marked a turning point, as regulators signalled stricter enforcement of data-sharing obligations.

Why It Matters

• Banks and energy providers can no longer delay or deliver subpar data-sharing services.
• Fintechs and data recipients can expect more reliable and consistent API access.
• Compliance is no longer optional—businesses that fail to meet CDR standards face real financial consequences.

Takeaway: 2024 saw a clear shift from CDR enablement to CDR enforcement.

August 2024: The CDR Reset Announced

Assistant Treasurer Stephen Jones declared that CDR needed a strategic reset, describing it as a "good idea, badly executed." The government committed to:

• Reducing accreditation costs and complexity
• Focusing on high-value use cases such as energy switching and real-time finance automation
• Prioritising action initiation to move beyond data sharing

Why It Matters

• Businesses that were previously locked out of CDR due to high compliance costs now have a clearer path to entry.
• The government acknowledged industry frustrations, setting the stage for a more practical and scalable CDR framework.

Takeaway: The reset is a fresh start for CDR—businesses should watch for regulatory adjustments that make participation easier.

August 2024: Action Initiation Becomes Law

Alongside the reset, the government passed the Treasury Laws Amendment (Consumer Data Right) Act 2024, introducing action initiation. This means that accredited CDR providers can now:

• Move money between accounts on behalf of customers
• Automate energy provider switching when a better deal is available
• Set up payments or direct debits without relying on traditional banking rails

Why It Matters

• CDR is no longer just about data-sharing—it can now be used to take action on behalf of consumers.
• Fintechs and energy providers can create fully automated, real-time services.
• The future of CDR looks more like Open Banking in the UK, where payments and account actions are integrated into everyday financial management.

Takeaway: Businesses that integrate action initiation early will gain a competitive edge in payments, lending, and automated services.

September 2024: A Push for Better Consent and User Experience

One of the biggest pain points in CDR adoption has been clunky, confusing consent flows. The government launched a consultation to simplify consent processes, exploring:

• Bundled consent options so consumers do not have to approve every single data request manually
• Pre-filled consent flows for trusted providers
• Better UI/UX standards to make data-sharing more intuitive

Why It Matters

• One of the biggest barriers to CDR adoption is consumer friction—this change aims to fix that.
• If businesses make consent simpler and clearer, they will see higher engagement and retention.
• Fintechs and energy providers that prioritise user-friendly data experiences will lead the market.

Takeaway: Expect 2025 to focus on better, more seamless CDR consent experiences.

November 2024: Non-Bank Lenders Delayed Again

Originally planned for November, the CDR rollout to non-bank lenders and BNPL providers was pushed to early 2025, with full compliance expected by mid-2026.

Why It Matters

• The delay means fintechs have more time to prepare for CDR integration.
• It also reinforces ongoing regulatory challenges—CDR expansion is not moving as fast as expected.
• However, once it does roll out, non-bank lenders will gain a major competitive advantage by accessing real-time financial data.

Takeaway: While the delay is frustrating, it gives fintechs more time to refine their CDR strategy.

The Road Ahead: What to Expect in 2025

Looking back at 2024, it is clear that CDR is evolving—but not without growing pains.

What’s Next?

• More businesses will enter the CDR ecosystem thanks to lower accreditation costs
• Action initiation will create real use cases for fintechs, lenders, and energy providers
• Non-bank lenders and BNPL providers will finally join CDR in 2025
• User experience will improve, making data-sharing and automation easier for consumers

How Fiskil Helps Businesses Stay Ahead

At Fiskil, we help businesses navigate the ever-changing CDR landscape with:

• CDR-compliant API solutions for financial and energy data
• Action initiation capabilities to automate banking and payments
• Expert guidance on accreditation and compliance

2024 was a year of change. 2025 will be the year CDR finally delivers on its promise.

Want to get ahead of the next phase of CDR? Let’s talk.