Why are Consumer Data Standards important to the Consumer Data Right?
A common challenge for consumers across a range of sectors is having access to enough information to make informed decisions: about how to spend their money, the home loan that’s right for them, the energy or mobile phone plan that will give them best value for money. Often, the details of products offered to consumers can be opaque and hard to understand. And consumers don’t often have great visibility of their own historic spending and consuming behaviour – or the ability to interpret those patterns of behaviour – to make the best decision for themselves.
The Consumer Data Right aims to give consumers control over information about themselves – in banking, energy and telecommunications – and share that information with accredited third parties. They could be looking to use personal budgeting tools, compare prices and benefits between different services, manage repayment of a loan or develop smoother accounting services.
Underneath the CDR, standards turn what is a right in principle into real action. Without common technical standards, data will be provided to consumers in lots of different ways that make it hard for consumers to choose from a range of providers. Standards ensure consumers don’t get locked into working with one provider to make sense of their information.