Non-bank lenders in Australia are now part of the country's Consumer Data Right framework and must start sharing product data such as interest rates, fees, and eligibility criteria through the government initiative, the Australian Competition and Consumer Commission (ACCC) said Monday.
The Consumer Data Right scheme has expanded in stages across the banking and energy sectors since its inception in 2020, allowing consumers to securely share their data with accredited businesses. It now has more than 1.3 million Australian users, an increase of about 135% over the last year.
At least 35 new businesses will enter the Consumer Data Right initiative as a part of the latest expansion, with consumer data sharing for non-bank lenders due to be phased in starting from Nov. 9, the ACCC said.
The opt-in service aims to make it easier for consumers and small businesses to compare products and services, obtain better value, and manage their finances and cashflows.
Shares of non-bank lender Resimac Group (ASX:RMC) gained over 1% in recent Monday trade, while consumer finance firm Latitude Group Holdings (ASX:LFS) was flat.