So far only Commonwealth Bank and Regional Australia Bank are both accredited providers and data recipients.
The chief customer officer at financial software company Biza.io, Mark Perry, said he expected a lot of data holders would become ADRs eventually. It is only a matter of time.
Perry said: “It makes sense. As ADRs, they can see what business their customers have with other financial institutions and they can see what products they should be offering them.”
Biza.io provides cloud-based CDR services to data providers and ADRs. Its CDR clients include Regional Australia Bank, Tyro and Australian Military Bank.
Perry said the slow take-up of data recipient accreditation and the large number of data providers that have sought exemptions is due to ADIs underestimating the effort required.
“In some cases they are working with core banking vendors that have also underestimated the task. It has not helped that the Australian government specifications are highly customised, which means banks and their software providers can’t use off the shelf solutions.”
Biza.io was started in 2017 by Stuart Low, a former head of innovation at Rabobank and lead engineer of CSIRO’s data standards body.
Perry said Biza.io supported the latest proposed changes to the CDR rules, which would introduce tiered accreditation, a CDR representative model and access by trusted professional advisers.
He said the government’s aim was to bring more participants into the system and, if successful, Australia would lead the way in the development of CDR.
Originally published at Banking Day