The CDR Reset: A Turning Point for Australia’s Open Data Economy

In August 2024, the Australian government acknowledged what many in the industry have been feeling for some time: the Consumer Data Right (CDR) isn’t delivering the value it promised.

Assistant Treasurer Stephen Jones described CDR as a “good idea, badly executed,” announcing a strategic reset aimed at reducing costs, simplifying processes, and focusing on high-value use cases. This shift signals a new chapter for open data in Australia—one that could finally unlock the potential of CDR for consumers and businesses alike.

What does this reset mean for fintechs, lenders, energy providers, and the broader data economy? And how can businesses position themselves to take advantage of the changes ahead?

Let’s break it down.

What Went Wrong with CDR?

CDR was launched with ambitious goals: to give consumers control over their data, increase competition, and drive innovation. But in practice, adoption has been slow, and the benefits have been limited.

1. High Costs and Complex Accreditation

The process of becoming an Accredited Data Recipient (ADR) has been time-consuming, expensive, and technically complex. Many businesses, especially fintechs and startups, have found the compliance burden too high.

2. Limited Consumer Awareness and Engagement

Most Australians still don’t know what CDR is or how it benefits them. Without clear incentives or compelling use cases, consumer adoption has remained low.

3. Delays and Gaps in Data Availability

CDR was designed to be a real-time, high-quality data-sharing ecosystem, but in practice, many data holders (particularly banks and energy retailers) have been slow to roll out reliable APIs.

4. Lack of Actionable Use Cases

Up until now, CDR has primarily been about data sharing, but businesses and consumers need more than just access to raw data—they need useful, automated actions that simplify decision-making.

The Key Changes in the CDR Reset

The government’s CDR reset aims to fix these issues by making participation easier, focusing on high-impact areas, and shifting towards actionable data-driven services.

1. A Shift from Data Sharing to Action Initiation

With the passage of the Treasury Laws Amendment (Consumer Data Right) Act 2024, CDR now allows for “action initiation”—meaning accredited providers can not only access consumer data but also make payments, switch accounts, or automate financial actions on behalf of users.

This is a game-changer. Instead of just seeing their financial data, consumers will be able to:

• Automatically move funds between accounts to maximise savings.
• Switch energy providers instantly when a better deal becomes available.
• Set up and adjust payments without relying on traditional banking rails.

2. Lower Barriers to Entry for Businesses

One of the biggest criticisms of CDR has been its complex and costly accreditation process. The government has committed to:

• Reducing compliance burdens for businesses looking to participate.
• Allowing more flexible access models, including intermediary services.
• Encouraging more fintechs, startups, and energy providers to enter the CDR ecosystem.

This means businesses that were previously locked out due to cost and complexity may now have a clearer path to participation.

3. A Focus on High-Value Use Cases

Rather than trying to apply CDR to every sector at once, the reset prioritises areas where consumers will see the most benefit first. Expect to see faster developments in:

• Open Finance (beyond banking, including non-bank lenders and BNPL providers).
• Energy Switching & Smart Billing (leveraging CDR for personalised energy plans).
• Automated Financial Management (using CDR data to optimise savings, debt repayment, and budgeting).

This shift will make CDR more practical, valuable, and relevant to consumers, which in turn will drive adoption.

What This Means for Businesses

For fintechs, lenders, energy providers, and tech innovators, the CDR reset represents a huge opportunity—but only for those who act early.

• If you’re a fintech or lender, action initiation opens the door to seamless, automated financial services that go beyond simple data aggregation.
• If you’re an energy provider, real-time data and switching capabilities can help you retain customers and offer personalised pricing.
• If you’re a tech company, the reduced accreditation barriers make it easier than ever to integrate CDR-powered solutions into your products.

How Fiskil Helps Businesses Take Advantage of the CDR Reset

At Fiskil, we believe CDR is at a turning point—and the businesses that move now will shape the future of open data in Australia.

Our CDR API solutions help fintechs, lenders, and energy providers:
✔ Access real-time financial and energy data without compliance headaches.
✔ Integrate action initiation capabilities for smarter, automated customer experiences.
✔ Stay ahead of regulatory changes with a trusted industry partner.

The CDR reset isn’t just about fixing what’s broken—it’s about building a data-driven future that actually works. The time to get involved is now.

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