Individuals will soon have the right to electronically transfer their personal data from one lender to another, in a move designed to encourage greater competition.
Treasurer Josh Frydenberg said the government would introduce legislation into parliament this week to establish the Consumer Data Right.
The Consumer Data Right will not only give consumers access to personal data held by businesses, but also allow them to share it with accredited third parties.
The Consumer Data Right will first apply in the banking sector – where it is known as ‘open banking’ – from 1 July 2019. It will then be rolled out to the energy and telecommunications sectors.
Data sharing will allow consumers’ actual circumstances to be more accurately taken into account when engaging with home loan lenders and other providers, according to Mr Frydenberg.
“It will allow for consumers to more easily compare prices, switch between products and providers, and have products and services customised to their individual needs,” he said.
“Better access to data will also support more efficient processes for businesses, with savings flowing through to consumers.”
The new system will be overseen by the Australian Competition & Consumer Commission (ACCC) and the Office of the Australian Information Commissioner.
“High levels of privacy protection and information security will be a core feature of the system,” Mr Frydenberg said.