Australian Open Banking: The Regulatory Dilemma of Balancing Different Policy Objectives

The Australian Government has recently enacted the "Consumer Data Right" legislation. The application of Consumer Data Right to the banking sector is commonly known as "Open Banking". Under Open Banking customers are given an option to share their data held by the incumbent banks with other accredited entities. This article explores the reasons for implementing Open Banking in Australia and considers both the benefits that can be enjoyed by the customers and risks that can be exacerbated by this data- sharing regime. Mainly this article focuses on the regulatory dilemma of balancing the policy objectives of the Consumer Data Right legislation when it is implemented as Open Banking.