We’re pleased to announce that Tyro is one of the first non-major banks to become an active data holder under the Consumer Data Right.
This is good news for us and for you, as the legislation introduces new levels of control and transparency around your banking data, plus it could unlock your potential to streamline otherwise mundane processes. Innovation always comes hand-in-hand with new terminology, so here are some new concepts to get your head around.
Introducing Consumer Data Right (CDR)
CDR, which stands for Consumer Data Right, is relatively new Australian legislation that gives consumers the right to share their data between service providers within a sector.
Banking is the first sector that CDR will apply to, with energy and telecommunications looking to be the next in line.
What is Open Banking?
Open Banking is another term being used to describe CDR within the banking sector. In this article, we use the terms CDR and Open Banking interchangeably. In essence, Open Banking is a safe and secure way for you to share your data between accredited organisations. One of the main goals of this data sharing is to allow you to more easily compare and switch between products and services if you choose to.
What data is included?
Open Banking is being introduced by the government in a phased approach, so the kinds of data available to be shared will vary depending on things like the institution you wish to share data from and whether the data relates to an individual or a business.
For Tyro, the first phase of data sharing will be available to Tyro customers who are sole traders in relation to their Tyro Bank Account and/or Tyro Business Term Deposit and includes things like transaction details and account balances and details. For more information on what kinds of CDR data are currently available across the industry you can refer to the CDR website https://www.cdr.gov.au/rollout.
If you only take away one message from this article, it is that CDR is an opt-in service. If you choose not to use Open Banking, your current banking will not change at all.
What control do I have?
If you are eligible to share your data and wish to do so you will need to provide your consent on the website or app of the accredited data recipient you wish to share your data with.
Your identity will then be verified by your provider using a One Time Password. You will never be asked to use any of your existing banking passwords.
You can check the Consumer Data Right register to make sure a business is an accredited data recipient. You can withdraw your consent at any time and request that data you have already shared be deleted.
What might the benefits be for me?
As both an individual and a business, the benefits of data sharing may include:
- easier comparison of financial products and providers
- single view of your accounts across banks
- streamlined application processes
- Open Banking might be particularly helpful if using non-bank-specific budgeting apps and comparison websites, as they can gather your data without you having to do the legwork. They can then provide more nuanced and personalised service.
Your data will only be shared if you give your permission for your data to be shared and the recipient is an accredited data recipient under the CDR.
Why has Tyro chosen to become an active data holder before the deadline?
While non-major banks are required to start sharing some types of data by 1 July 2021 (unless an exemption applies), Tyro has been an active data holder since 8 June 2021. We see our ahead-of-deadline status as an active data holder as a way of providing eligible Tyro customers with the ability to be on the cutting edge of this new technology.
As CDR is being introduced by the government in a phased approach, Tyro will be making CDR data sharing available to customers over time as new phases and changes to the CDR come into effect.
What will the timing of the roll-out be?
The first phase of data sharing will be available to Tyro customers who are sole traders in relation to their Tyro Bank Account and/or Tyro Business Term Deposit.
The next phase of data sharing with Tyro will commence for sole traders in relation to their Tyro Business Loan by 1 February 20221.
We expect the remainder of our customer base to be eligible to share their data by 1 November 20221.
What does Open Banking mean for me as a Tyro customer?
Convenience is at the heart of CDR, fitting with our aim at Tyro to make your life that little bit simpler. For eligible Tyro customers, you now have more control over data you wish to share within the Tyro App.
Settings > Manage Data Sharing
You can see who you have given data sharing access to and make changes, including stopping a data sharing arrangement at any time. While there is no rush to embrace Open Banking, our aim is to be on the front foot for our customers.
Keen to read more?
Tyro recommends these sources for further reading:
Examples of how businesses and individuals can benefit from CDR: https://www.cdr.gov.au/resources/consumer-data-right-stories
To see Open Banking in practice: https://www.cdr.gov.au/how-it-works
Do you have any questions about Tyro’s status as an active CDR data holder or any other Tyro service?
We’re just a phone call away: Contact us on 1300 00 TYRO
1 These dates are based on legislative requirements that came into force on 23 December 2020 and may change. For more information, see https://www.cdr.gov.au/for-providers#goto-be-part-of-consumer-data-right.