The next frontier of CDR: new access models


On July 1, 2021, Treasury released draft amendments to the Consumer Data Right Rules for consultation (Version 3), with specific amendments regarding new models for accessing the CDR, allowing participants to share CDR insights for specific purposes and creating a single consent data sharing model for joint accounts.

To save you timing reviewing the 243 page documentation Adatree has prepared an overview of the proposed changes here.

To improve participation in the Consumer Data Right the changes to legislation have proposed new models for accessing the CDR: 

  1. The Sponsor / Affiliate Model

The Sponsor/Affiliate Model enables organisations to access CDR data through the sponsor, which is an unrestricted and active ADR, like Adatree. The two things needed to have in place are sponsored accreditation, a lighter version of the current accreditation process that ADRs must follow and a sponsorship arrangement, a contract with the sponsor. Any company can be an affiliate, but the sponsor has to consider security posture, reputation, business case and general business sophistication when deciding to sponsor the affiliate. 

The main benefits to this model is an affiliate can leverage the active and accredited status of Adatree and have significantly reduced initial and ongoing costs for receiving CDR data.

Read more about how Adatree will be a sponsor to affiliates here

2. The Trusted Advisor Model

This new proposed access model would enable trusted advisors (examples below) to receive CDR data, based on the fact that they are regulated and trusted with consumer data now. This trusted model would enable consumers to share their data for goods and services with their advisors, without requiring them to go through accreditation themselves.Examples of Trusted Advisors are:

  • qualified accountants

  • persons who are admitted to the legal profession

  • registered tax agents, BAS agents and tax (financial) advisers

  • financial counselling agencies

  • financial advisers or financial planners

  • mortgage brokers

Read more about how Adatree will facilitate CDR for Trusted Advisors here

3. The CDR Representative Model

The Principal/CDR Representative Model enables organisations to access CDR data through the sponsor, which is an unrestricted and active ADR. A CDR representative arrangement is a commercial arrangement with an unrestricted principal ADR (like Adatree) and the CDR representative. This arrangement is disclosed to the DRA but there is no official accreditation outside of this commercial relationship. A CDR representative can only have this arrangement with one principal. 

Under this model the sponsor, like Adatree, would need to host all data in a data enclave, Adatree already has CDR data storage as an option, and would also take on all liabilities for any data breaches.

Introducing Insights for CDR

Another key proposed amendment regards the use of ‘CDR Insights’. For the overall benefit of the customers a CDR insight such as the ones listed below could be shared outside of the CDR ecosystem for a specific purpose.

Insight examples are low-risk outcomes that are a specific purpose or a yes/no, including: 

  • Verify customer income 

  • Verify customer expenses

  • Verify account ownership

  • Identify the customer (not KYC/AML)

  • Provide an actual balance at a specific point in time 

  • Provide alert to merchant if upcoming payment will fail

  • Provide average income over period of time

Read more about how Adatree will offer CDR Insights as a Serivce here

Finally, to improve the overall experience for joint account holders recommended changes have been made regarding default pre-approval consent setting and options for disclosure management.

Our mission at Adatree is to create a world where data is democratised and competition is the driver for better consumer outcomes. By reducing barriers to entry and increasing participation rates in the CDR we believe there will be better outcomes for businesses and customers.

Get in touch find out how Adatree can support you on your journey with the Consumer Data Right.