The ABC of CDR: Open banking success starts here

As New Zealand starts its journey towards a statutory Consumer Data Right, what are the fundamentals that support success?

By Taner Uzelakcil, Regional Sales Manager A/NZ, Envestnet® | Yodlee®

New Zealand has started its exciting journey towards a whole-of-economy statutory consumer data right (or “CDR”) commencing with the banking sector.

That’s why open banking is going to be a hot topic of conversation at FinTechNZ’s upcoming Hui Taumata 2023!

The Envestnet® | Yodlee® team are international professionals in financial data aggregation, including how to access the data and build innovative fintech use cases with it. 

So, to help get the conversation started, here is the ABC of CDR, a simple guide to understanding and taking advantage of this upcoming new regulation.

A is for API access, read+write action, and account aggregation

Using CDR, consumers can share their financial data held by banks with third-party providers such as lenders, other financial institutions, and fintech apps.

The data sharing is enabled by secure API access and is governed by rules on consent and privacy.

This read access to bank data is already benefiting consumers around the world as they opt to share their financial data.

CDR can be turbocharged by adding write access, which is also known as action initiation.  Actions can include opening or closing an account, switching providers, making a payment and updating personal details such as your address.

A simple and obvious use case for open banking is account aggregation where a bank or fintech app can help you stay on top of your finances by pulling all of your bank balances together in one place.

B is for bank data, budgeting, and business benefits

The data that can be shared may include transaction history, account balances, interest rates, and may also include some personal information such as name and address.

A great use case for open banking is budgeting and saving, both key features of personal financial management apps that give consumers better insights into their spending habits.

Even though it’s called the “consumer” data right, businesses can also benefit from open banking when business bank accounts are included in the regime.

C is for convenience, choice, and confidence

CDR will give consumers more convenience, as data can be shared with a few clicks, rather than manual work to fill in forms and provide bank statements.

By making it easier to compare alternatives from other providers, CDR also gives consumers more choice in the market. 

Importantly, consumers can have increased confidence to make informed financial decisions and easier ways to take action on personalised outcomes.

Your open banking success starts here

With so much opportunity in CDR, it can be hard for fintech startups and banks alike to know where and how to start.    

Envestnet | Yodlee is helping those conversations, facilitating connections, and supporting open banking success with our data & analytics products and innovation tools such as our sandbox.

Internationally, we empower fintechs, financial advisors, and financial services providers with innovative technology, solutions, and intelligence to help make financial wellness a reality for their clients through an intelligently connected financial life.

If you’d like more information about open banking data sharing and analytics, please reach out to me at taner.uzelakcil@envestnet.com at any time. 

Hear more from Envestnet | Yodlee at the FinTech Hui, where A/NZ Country Manager Tim Poskitt will be speaking on stage on a panel and Head of Open Banking A/NZ John Harrison will be leading a round table.