Non-bank lenders will soon need to share product information in line with major banks.
Australian Competition and Consumer Commission (ACCC) Commissioner Dr Ian Oppermann said the new obligations would require non-bank lenders to share data such as interest rates, fees, charges and eligibility criteria through the Consumer Data Right (CDR).
Dr Oppermann said sharing this information through CDR supported the development of comparison services and would help consumers and small businesses to access better value and improved loan options.
He said the Consumer Data Right commenced in 2020 when the major banks began sharing data.
“Since then, the scheme has expanded in stages across the banking and energy sectors, and now to the non-bank lenders sector.
“The expansion of the Consumer Data Right to non-bank lenders is a significant step in giving consumers access to information about the broadest possible range of financial products.
“The inclusion of non-bank lenders in the CDR will give consumers a more complete picture of some of the largest household costs, including their mortgage, power bill, and car finance and personal loans.”
Dr Oppermann said more than 1.3 million Australians were currently using CDR, an increase of approximately 135 percent over the last year.
He said the use of the CDR was expected to continue growing as it expanded into non-bank lending, with data sharing for non-bank lenders to be phased in from November 9 this year, depending on the size of the provider.
“Once available, consumers will be able to use their own data, that a financial institution holds, to compare products, streamline loan applications and consider whether switching lenders could help them get a better deal.”
