FinTech Australia, FDATA ANZ write to ACCC about CDR rules ‘breach’ by ING and call for action

FDATA ANZ and FinTech Australia have issued a joint statement to the Australian Competition and Consumer Commission (ACCC) raising “serious concerns” about ING Bank Australia’s recent decision to transition to a new Consumer Data Right (CDR) solution and calling for “immediate action”.

In the statement, written on behalf of Accredited Data Recipients (ADRs) “across the ecosystem”, FinTech Australia and FDATA ANZ said they understand that ING will be transitioning to a new consent solution in which all active Data Sharing Arrangements on the existing solution will be invalidated on 8 February 2023.

Among the concerns raised by the organisations are that not all accredited providers (ADRs) had been notified of the decision, and those that were had been given a “short timeline”.

They stated: “At the core of the matter is that this behaviour may be in breach of the CDR rules and obligations that Data Holders like ING have. Specifically, the rules that relate to the conditions under which authorisations and consents can be revoked.”

Rehan D’Almeida, general manager at FinTech Australia, said that ING is setting “a dangerous precedent for the Consumer Data Right rollout”, and endangering the benefits it is bringing to consumers.

“It’s perplexing that ING, a bank with consistently high customer satisfaction ratings, would not prioritise the Consumer Data Right,” D’Almeida added.

“This is a transformational reform and the banks have had years to establish the systems they need to be compliant.”

With thousands of consumers likely to be impacted and ADRs set to “bear the cost of reintegration”, FDATA ANZ and FinTech Australia called on the ACCC to take regulatory action “proportionate to the seriousness of the breach and the level of harm, detriment or potential harm this can cause to consumers and trust and confidence in the CDR regime”.

FDATA ANZ’s Mat Mytka

An ING spokesperson told Open Banking Expo: “We are committed to building a safe and secure Open Banking experience for our customers that has the potential to offer more functionality in the future. In order to do this, we need to perform a platform upgrade.

“We are working through the migration plan with Accredited Data Recipients (ADR) and customers to make the process as seamless as possible. One of the unintended consequences of the platform upgrade is that we will have to bring forward the re-consent of some customers, a step that everyone subscribed to the Consumer Data Right needs to do on an annual basis.

“This update will ultimately enhance the Open Banking experience for ADRs and customers with expanded functionality and benefits.”

Mathew Mytka, FDATA ANZ’s regional director, FDATA ANZ pointed to the cost-of-living crisis affecting many Australians and the potential for CDR to drive competition across services, such as energy and gas, by making it easier for consumers to switch providers, save money and improve their financial lives.

“Open Banking is still tracking well, with 95% of ADIs sharing data (114 brands) and 88 Data Recipients in the ecosystem. But while many banks are doing the right thing, we do need to see a firm response from the regulator to ensure this does not set a precedent,” said Mytka.