A white paper from NatWest and NAB says that Australia should think about making an open banking implementation entity like the UK’s OBIE so that the industry and regulators can work together well.
NatWest and NAB have written a white paper about the similarities between Australia’s Consumer Data Right (CDR) and the UK’s Open Banking regime. Both countries are well on their way to making banking more open.
The CDR regime was modeled on the Open Banking framework, but it went beyond exchanging banking information and payment services to build a whole-of-economy data portability framework.
The UK is now also interested in open data, which is not related to banking or finance.
The white paper comes to the conclusion that both countries are on the right track. But reform is needed to make sure that these systems keep up with changes in technology and reach their full potential to allow for more competition and innovation and, in the end, help consumers in both countries.
For Australia, a system like OBIE could make it easier for industry and regulators to work together. The UK, on the other hand, should try to copy Australia’s efforts to create a system for sharing data across the whole economy.
Both countries should think about global interoperability to make sure they stay at the forefront of trade driven by technology. They should also look beyond a sectoral approach and toward “Open data.”
The paper says that both should also include a role for digital identity. Without it, the regime won’t be able to grow and give consumers and the economy the benefits that were promised.
