Australia’s Consumer Data Right regime went live to customers of major banks in July 2020, and to customers of other banks in July 2021. In addition to significant government investment, the banking industry has invested around $1.5b into CDR since 2018.A review of the scheme conducted on behalf of the ABA by Accenture found that in 2023 only 0.31 per cent of bank customers were using CDR and that more than 50 per cent of data sharing arrangements had been discontinued or allowed to lapse. The review further contends that the CDR is negatively impacting competition in the sector as mid-tier and regional banks incur disproportionately higher compliance costs compared to major banks. Tis in turn is leading to vital technology and customer projects in digital banking and scam protection being deprioritised ABA CEO Anna Bligh comments: “Despite the best efforts of Government, regulators and industry, this review makes it clear that CDR has not realised its potential. “Australians have enthusiastically embraced digital innovations in banking such as mobile wallets and PayID, however uptake of the CDR has been comparatively low. “It’s time to go back to the drawing board. The current CDR regime isn’t delivering for customers or enhancing competition and a new pathway forward is needed.” Customer Owned Banking Association (COBA) CEO Michael Lawrence says samller banks have collectively invested over $100 million in CDR, with very little benefit to customers or competition. “While we support the intent of the CDR to increase competition, it has actually made it more difficult for smaller banks to compete by tying up resources with little to no tangible return,” he says. “Before smaller banks commit more resources, we ask for a clear roadmap to ensure the CDR delivers on its original intent to improve competition.