Jamie Leach, Open Data Strategist at Raidiam, explains what the inclusion of non-bank lenders means for the evolution of the Consumer Data Right (CDR) - and why it’s a critical step toward meaningful consumer choice in Australia’s open banking ecosystem.
When it comes to Australia’s Consumer Data Right, progress hasn’t always been swift despite its positive impact on the banking and energy sectors by giving consumers control over their data. But recent developments signal positive momentum. The inclusion of non-bank lenders (NBLs), including Buy Now Pay Later (BNPL) providers, marks an important expansion of the CDR regime. It promises to make borrowing smarter, faster, and more transparent for consumers.
It’s a long-anticipated step forward, building on years of consultation, amendments and industry feedback. And while full implementation won’t happen until 2026, the roadmap is now clear.
What’s changing and why it matters for open banking
Starting mid-2026, non-bank lending products will officially join the CDR ecosystem. This means that consumers can share their data with accredited third parties to compare loans, switch providers, or apply for tailored financial products - all with just a few clicks.
The CDR milestones for non-bank lenders:
The journey to bring NBLs into the fold has been carefully mapped out into five tranches to facilitate a phased implementation:
- Tranche 1 (13 July 2026): Product data request obligations commence for both initial and large providers.
- Tranche 2 (9 November 2026): Consumer data requests (excluding complex requests) begin for initial providers.
- Tranche 3 (15 March 2027): Obligations for initial providers regarding complex requests take effect.
- Tranche 4 (10 May 2027): Consumer data requests (excluding complex requests) commence for large providers.
- Tranche 5 (13 September 2027): Obligations for large providers concerning complex requests begin.
These milestones reflect extensive consultation and a strategic reset of the CDR system to address concerns about compliance costs and limited consumer uptake.
This change represents a more inclusive approach to open banking in Australia. It ensures that all types of credit providers, not just traditional banks, are part of the picture.
It also recognises how Australians engage with financial services in real life. Whether it’s through a personal loan from a fintech or a BNPL transaction at the checkout, these products shape consumer financial lives and deserve to be included in any serious data-sharing framework.
Levelling the playing field for non-bank lenders
Encouragingly, the updated rules show an awareness of the compliance burden that open banking regulation can place on smaller lenders. Reducing mandatory data retention periods from seven years to two makes CDR participation more feasible for these players, without compromising consumer protections.
The framework has also been tailored to avoid overreach. Certain product types, such as reverse mortgages and foreign currency loans, are temporarily excluded from mandatory data sharing. This allows for a more focused and manageable rollout.
Expanding the value of Consumer Data Right
So why is this important?
Bringing non-bank lenders and BNPL providers into the CDR expands the framework’s value for everyone. Consumers gain access to a more complete financial picture. Fintechs and brokers can build more accurate, user-friendly affordability tools. And comparison services can offer more competitive insight, all powered by consent-driven financial data sharing.
Put simply, this change makes CDR more relevant. Previously, its limited scope meant consumers weren’t seeing the benefits promised by open banking frameworks. With a broader range of credit data now in play, the potential for innovation and improved financial outcomes increases significantly.
Outgoing Assistant Treasurer Stephen Jones summed it up best:
The government’s changes will open opportunities for consumers to use the CDR to find the best deals on more lending products... delivering more choice and access to financial products tailored to individual needs.
What’s next for CDR implementation?
As we count down to mid-2026, there’s still a journey ahead. Non-bank lenders will need to prepare for technical and compliance requirements. Regulators and government must continue working to balance simplicity and security. And the wider industry must keep pushing for a consumer-centric approach to data sharing.
But the direction of travel is encouraging. This reform helps shift the CDR from a well-meaning initiative to a functioning part of Australia’s digital economy infrastructure. It supports better competition, greater transparency, and smarter financial decisions.
Want to learn more about how Raidiam enables secure, scalable data-sharing ecosystems for open banking and beyond? Get in touch today.
