Non-bank lenders join the CDR!

The non-bank lenders (NBL’s) have entered the chat! 

It’s been a long time coming, but we’re thrilled to see the government has bound non-bank lenders into the CDR, setting an initial compliance deadline of July 2026. 

NBLs are a key value driver for the CDR where we expect to see game-changing benefits for both consumers and lenders.

Australians are increasingly turning to non-bank lenders for loans, which, according to the Reserve Bank of Australia, now account for 5% of total financial system assets. Wisr found that from January 1 to June 30, 2024, car loans were the most popular reason for borrowing on its platform.

Expanding CDR to non‑bank lending will allow consumers to share their data from non‑bank lenders, allowing them to better compare and apply for loans for things like renovations, renewable energy assets, and cars—saving time and money! 

Retiring Minister Stephen Jones said in a speech to the FBAA late last year, that the focus on extending the CDR into consumer finance and borrowing unlocks “use cases that consumers actually want and find value in” and has “the potential to help consumers get a complete picture of their financial position and chart a way forward. It can also reduce unnecessary friction and help Australians by better deals to support home ownership.”

On the industry side, we’re already seeing platforms launch to help lenders and brokers take advantage of the CDR to automate loan origination. 

This kind of momentum is a positive sign as we look towards a big 2025, with Action Initiation set to take the CDR ecosystem to the next stage, bringing with it perhaps the biggest leap forward for the industry so far which will empower consumers to take action such as energy account switching.

Are you a non-bank lender designated under the Consumer Data Right? Or not sure if it affects you? 

If the answer is yes, then it’s time to get the ball rolling! With under 16 months until ‘initial’ and ‘large’ providers need to provide product reference data, there’s no time to waste. 

To help you out, we are on hand for non-bank lenders to explain what you need to know about the CDR and the potential challenges ahead. 

Sign up here and we will be in touch for a free session to help you understand the next steps.

As the only pure-play CDR vendor, Biza has seen it all and can answer any questions you might have before setting out on your CDR journey.