15 days ago · 3 min read
The finance industry has a communication problem.
We have not effectively shared data between systems. The result is excessively burdensome and lengthy processes for everyone involved.
If we allow the flow of data, we can create an entire unified ecosystem between banks and trusted advisers such as mortgage brokers that can resolve bottlenecks, improve customer experience, generate business, solve needs and much more.
Enter Open Banking – a collaborative model that the whole industry has been gravitating intensely towards. Under this new model, a data-sharing scheme was introduced with a strong emphasis on seamless information exchange and high-level security.
On Tuesday, the government made amendments to the Consumer Data Right (CDR) Rules including opening up consumer data to mortgage brokers on a mass level.
The CDR encourages an openness to opportunities, connection across the whole industry to achieve better outcomes and demands that consumers have total control over their data. Here is a full list of current data holders and accredited data recipients and some exciting use cases.
The changes aimed to induce higher participation in the data-sharing scheme by both businesses and consumers. It empowers consumers to take the reins in sharing their data with selected trusted professional advisers, including their mortgage broker. This means consumers decide who to disclose data to, for how long, with whom and for what purpose.
The previous rules did not permit the disclosure of data by an accredited data recipient (ADR), such as a bank, to other parties that the consumer wishes to share their data with.
The amended rules mean that a CDR consumer can consent to an ADR such as their bank to disclose their data to their nominated trusted adviser such as a mortgage broker.
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