As we start the new year, Adatree – Australia’s Consumer Data Right (CDR) intermediary – is encouraging companies to prepare themselves for even more growth and innovation.
What can be expected from CDR in 2023?
From the anticipated launch of Open Energy to Action Initiation legislation passing to Access Models, CDR is going to heat up this year! So what can be expected from CDR in 2023?
Insights will be big
One of the new developments of CDR is Insights, which enables an Accredited Data Recipient (ADR) to collect consented CDR data for a specific purpose and give a snapshot of information to a company that has been explicitly designated by the consumer.
By verifying specific, low-risk yes or no data points, the CDR Insights Model minimises the amount of data that needs to be shared while still achieving the desired outcome. For example, if someone applies for a rental property, the real estate agency only needs to confirm an applicant’s identity and ability to pay. This can be achieved by using CDR Insights.
Businesses will leverage CDR to receive insights like someone’s ability to pay or confirm account ownership without the risks that come from consumer data collection and storage. It mitigates the possibility of a data breach without hindering the process of verification.
Interest in Trusted Advisers will continue to gain traction
As a new model for CDR access, Trusted Advisers (TAs) are classes of professionals who can leverage their existing certifications and regulations to participate in some aspects of CDR, without requiring an additional CDR accreditation. Trusted Advisers include professionals like qualified accountants, persons admitted to the legal profession, registered tax agents, BAS agents and tax (financial) advisers, financial advisors and planners and mortgage brokers.
TAs, like mortgage brokers and financial advisers, can access CDR data through Adatree without the stringent and costly process of CDR accreditation. It doesn’t reinvent the wheel of accreditation and leverages their existing certifications and privacy obligations to clients.
Energy use cases
The energy sector is now participating in Consumer Data Right (CDR) and Adatree is seeing increased interest in energy data use cases that will enable major benefits for Australians, like energy comparison sites or tailored solutions to transition from electricity to solar.
With the increase in energy prices, experts are predicting a huge uptick in solar home solutions in 2023. With Open Energy now live in the Consumer Data Right (CDR) ecosystem, solar providers can use detailed energy consumption data to build precise and tailored solar home solutions. Aussies can go green and save money in the process too.
Increased consumer expectations for their personal data handling
Gone are the days of consumers passively sharing their data with businesses. Instead of happily handing over personal information, consumers are becoming increasingly aware of a firm’s obligations around data protection including why the data is needed, where it’s going, how it will be used and stored or when (or if!) it will be deleted. I think 2023 is going to be the year consumers start questioning who is collecting their data and how it’s being handled.
And they should be! In particular, I’d like to see consumers asking about the purpose of the data – does the specific personal information align with the desired outcome? If it doesn’t, then that’s a good indication that a business is using your data for their own benefit.