If you have ever tried to switch banks or share your banking data with other organisations, you’ll know that at times it can be problematic. An initiative launched today by the Australian Competition and Consumer Commission (ACCC) called the Consumer Data Right (or CDR) will put consumers in full control of their data, making it easier to share, safely and securely, on their terms, and Regional Australia Bank customers are first-in-line to experience the efficiencies the CDR will bring.
Regional Australia Bank has been putting people before profit for over 50 years, so it will come as no surprise to its customer base that it has taken the reins to lead the nation on this project.
Regional Australia Bank Chief Digital Officer, Rob Hale said the bank instantly saw the value this project could bring, not only to the banks customers but to any consumer looking to borrow money or switch banks.
“As a customer-owned institution the value of this project was clear from the outset. Although it’s had a lengthy gestation period [the project began in 2017 for the bank], it’s exciting to finally get to the start line and important that we are part of this new data ecosystem that promises so much for Australian consumers.”
Regional Australia Bank has initially selected personal loans to receive the CDR treatment. Once the ecosystem is up and running applicants will be able to provide consent for bank staff to access transaction history with the major banks in order to process applications faster than ever before. Later in the year, the same process will be applied to home loans and extended beyond the Big Four as more banks participate in CDR. The new process will make it easier than ever for customers to ‘shop around’ for their financial needs, in-turn creating a more innovative and competitive finance sector for all.
“With CDR, customers who have a banking relationship with any of the Big 4 will be able to apply for a personal loan at Regional Australia Bank with less hassle. This new ecosystem will allow customers to give us permission to do the heavy lifting for them – ultimately, they will no longer have to source bank statements or justify their expenditure; we will be able to do all of that for them, with their consent.
“Over time, it means who you bank with might be of less significance as the barriers to switching or selecting alternative providers will be lower. That will hopefully raise service levels across the board as institutions work harder to keep their customers”, Rob added.
Essentially, the Consumer Data Right is all about putting the consumer in control of their data, allowing them to easily access better products and services. In a nutshell, it makes banking about people. For more information, visit www.cdr.gov.au
Customers interested in trying Consumer Data Right during this early phase are encouraged to contact our Lending Support Team directly on 1300 132 067.
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